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Dentons advises Mezzanine Capital on two mezzanine loans in the Czech Republic

Dentons advised the lender Mezzanine Capital on its first two financing transactions. The first transaction was a €12.5 million mezzanine loan to Medicon Group to fund the acquisition of ProNatal Medical Business. The deal involved negotiations of intercreditor arrangements with senior lender and a complex financing structure with more than 30 obligors across four jurisdictions. Senior financing was provided by UniCredit Bank Czech Republic and Slovakia, a.s.

Partners Jiří Tomola and Daniel Hurych led the Dentons team working on the deal with support from Counsel Tomáš Osička and Associates Jan Hrivnák and Klára Kubáňová.

The second deal was a mezzanine loan in connection with the recapitalization of Nolloth S.A. and its subsidiary VÚES Brno. The total size of the transaction, including debt refinancing and recapitalization, amounted to €26 million with the mezzanine portion being €6 million. Senior financing was provided by UniCredit Bank Czech Republic and Slovakia, a.s.
Partner Jiří Tomola led the Dentons team working on the second deal with support from Counsel Tomáš Osička and Associate Klára Kubáňová. Dentons’ Luxembourg team, led by Partner Stéphane Hadet, provided Luxembourg law advice.

Jiří Tomola commented, “Mezzanine Capital is a new player that has been very active in the Czech Republic and CEE region since its set up and these deals are clear evidence that the mezzanine element is on the rise in the Czech finance market. Mezzanine financing offers an alternative to companies whose financing needs for acquisitions, restructuring or CAPEX programs exceed the financing limits set by the commercial banks. Our work on these transactions is a great example of how Dentons is at the forefront of financing trends the Czech Republic.”

Mezzanine Capital is a corporate financial boutique which provides individual mezzanine financing solutions to large, small and middle sized enterprises, predominantly in the Czech Republic, Slovakia and neighboring countries.