Mezzanine Debt

Definition of 'Mezzanine Debt'

A middle layer of debt in leveraged buyouts - below the senior debt layer and above the equity layer.

A typical mezzanine investment includes a loan to the borrower, in addition to the borrowers issuance of equity in the form of warrants, common stock, preferred stock, or some other equity investment.

Mezzanine finance shares characteristics of both debt and equity financing.

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