Hybrid Solutions

Paul Hastings’ Hybrid Solutions practice identifies and structures bespoke investment solutions with a range of financial instruments to fit each phase of a particular business’ life cycle, including traditional senior, mezzanine and subordinated debt (with or without equity features) as well as hybrid structures, such as true preferred instruments, structured debt-like preferred and late-stage growth equity.

Our interdisciplinary team works closely with private equity funds, private credit funds, financial institutions and other market participants to facilitate structuring, negotiating and closing private capital investments. We provide unparalleled value and services to a wide array of finance and private equity clients.

Team Strength

Our Hybrid Solutions team comprises over 500 finance, private equity, mergers and acquisitions, restructuring and tax lawyers who are experienced at working across the balance sheet and capitalization table on transactions including:

• Mezzanine with warrants
• First lien
• Second lien
• Silent second
• Super preferred
• Redeemable preferred without warrants
• Redeemable preferred with warrants
• Convertible preferred with multiplier
• Convertible preferred
• Participating preferred
• Holdco PIK

Broad Experience

Paul Hastings has broad, extensive experience with sponsor-backed deals. Our Hybrid Solutions team advises on tailor-made instruments designed around the investment profile of the investors and the capital needs of the issuer. The proceeds from the deals we close are used for:

• Late-stage growth
• Pre-IPO alternatives
• Acquisition financing
• Dividends
• Recapitalizations

Select Representations

 

Preferred Equity Transactions

• Accel Partners in multiple financings and various growth equity transactions
• Advance in multiple transactions, including its investments in HawkEye 360 and Scopely
• Ares in its $200 million preferred equity financing of a Bain buyout
• Bessemer Venture Partners in multiple financings and various growth equity transactions
• Blackstone in various financings
• CapitalG (formerly Google Capital) and Google Ventures in multiple financings and various growth equity transactions
• Deerfield Management in multiple transactions including its investments in Frontier Medicines and NeoChord
• EMZ Partners in its investment in Advancy
• Goldman Sachs in multiple financings and various growth equity transactions
• Guggenheim in its follow-on investment in Rezilion
• ICG in its $225 million preferred equity financing of a GTCR buyout
• Oak Hill Advisors in its investment in Blue Source Sustainable Forests Company
• Point72 Ventures in its investment in Spring Oaks Capital
• Redmile Group in multiple transactions, including its investments in Neurogene and ElevateBio
• The Riverside Company in financing its investment in Seatex
• Sequoia Capital in its growth equity investment in Prosper Marketplace
• Sixth Street in multiple transactions, including its investment in Employment Hero Holdings
• TCV in multiple financings and various growth equity transactions
• Thayer Street Partners in financing multiple secondary investments in private media and technology companies
• Vector Capital in its investment in MoxiWorks
• York Capital in its growth investment in AMC Health
• Private credit lenders in providing $1.6 billion in financing for Clearlake Capital’s $5.3 billion majority growth investment in ModMed, a specialty-specific, AI-powered healthcare SaaS platform

Junior/Subordinated Debt

• GI Partners and its portfolio company, Consilio, in financing Consilio’s acquisition of Legal Services Holdings
• H.I.G. Capital in financing its acquisition of Northwest Pump
• Goldman Sachs in Thoma Bravo’s $5.3 billion all-cash take-private acquisition of U.K.-based AI-cybersecurity company Darktrace
• The lenders on a mezzanine financing transaction for Opendoor Labs
• Financing sources on a junior term loan facility for Aptim, an industry leader in environmental, sustainability and infrastructure solutions
• The lenders in providing subordinated financing to Turtle Island Foods
• The lenders on a mezzanine financing transaction for The Gormon-Rupp Company
• The administrative agent in connection with a consent to an existing credit agreement to permit the incurrence of subordinated debt for a U.S.-based railroad contractor
• Financing sources on a subordinated credit facility for a global manufacturer of power-conversion products

Senior Debt

• BPOC in its launch of Atlas Clinical Research and financing for the formation of a strategic partnership with Rochester Clinical Research
• GI Partners and its portfolio company, Consilio, in financing Consilio’s acquisition of Legal Services Holdings
• H.I.G. Capital in financing its acquisition of Northwest Pump
• Vector Capital in financing its acquisition of Riverbed Holdings