Stretched Senior Debt
Higher leverage in a single facility — no mezzanine complexity
Stretched senior debt delivers higher leverage than a standard senior facility while keeping the entire capital stack with one lender and one set of loan documents. It avoids the intercreditor deed, dual due diligence and additional legal costs that come with a separate mezzanine tranche.
Key Terms
- LVR: Up to 75–80% of GRV
- Lender count: Single lender
- Documents: One loan deed, no intercreditor
- Pre-sales: Reduced requirements vs bank
Who offers stretched senior?
Stretched senior is almost exclusively a non-bank product. These lenders have the risk appetite to hold a higher GRV position within a single security without requiring a separate mezzanine piece.
Best Suited To
- Developers who want to avoid intercreditor complexity
- Projects where a single due diligence process reduces cost and time
- Sponsors targeting 75–80% GRV without splitting the capital stack
Stretched senior development finance: higher LVR in a single facility with one lender and one set of documents — no mezzanine intercreditor complexity.
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