Private Equity & Mezzanine Financing

Atlantis Investments, Inc. provides "mezzanine" and equity financing to small and medium-sized businesses. As the middle layer of the capital structure, mezzanine financing consists of a subordinated note, plus an equity component. Situations where mezzanine financing might be appropriate include:

• Leveraged buyouts
• Corporate acquisitions
• Corporate recapitalizations
• Later stage business expansions where a company has outgrown its capital base.

• Revenues of $1 to $100 million, Minimum EBITDA of $500,000.
• Consistent financial performance.
• Market Leader.
• Strong management teams with equity participation.
• Manufacturing, distribution, communications, transportation or service industries.

• Minimum equity of $20%.
• Cash debt service coverage of 1.1X or greater.
• Traditional cash flow of not less than 20% of total debt.
• Amortization of senior debt within seven years.
• Sufficient liquidity to fund operations post closing.

• Management buy-outs of private businesses and divisions of mid size companies
• Growth equity financing for rapidly growing middle market companies.
• Recapitalizations of private companies.
• Early stage growth equity for information technology companies
• Equity financing for acquisitions in fragmented industries.

The target rate of return, or IRR on such mezzanine financing will be about 19% to 25% per year, based upon risk factors and the size of the financing. This return will be achieved through a combination of current income and appreciation in the value of the equity component.

If appropriate, Atlantis will also provide preferred or common equity in conjunction with its mezzanine financing. The target rate of return on each equity financing will range from 23% to 35% per year, based upon the structure of the equity, risk factors, and the size of the financing. This return will be achieved through a combination of dividend income and appreciation in the value of the equity.

• Leveraged Buyouts/Recapitalizations

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