mezzanine debt

Definition
Debt that incorporates equity-based options, such as warrants, with a lower-priority debt. Mezzanine debt is actually closer to equity than debt, in that the debt is usually only of importance in the event of bankruptcy. Mezzanine debt is often used to finance acquisitions and buyouts, where it can be used to prioritize new owners ahead of existing owners in the event that a bankruptcy occurs.




mezzanine debt is ...
... part of the
Bonds, Mergers & Acquisitions and Venture Capital subjects.


Related Terms

quasi-equity -  More
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