FT MarketWatch

Mezzanine debt

Debt that incorporates equity-based Option, 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 Buyout, where it can be used to prioritize new owners ahead of existing owners in the event that a bankruptcy occurs.

Related Terms: 19 Acquisition, Buy, Bankrupt, Buyout, Base, CLO, Close, Debt, Finance, FIN, Import, Inc., Low, Mezzanine debt, Option, Owe, OCC, Own, UIT
Other Related Pages: Category: Venture_Capital Starting With: M
Additional Related Terms: 10-Q, 10-K, 52-week low, Acquisition cost, Asset/equity ratio, Adjustable rate, Agent bank, Accrual of discount, Amortization of premium, At par