Mezzanine Debt

Type of financing that typically sits between senior debt and equity in the capital stack. Mezzanine debt is a form of debt that allows the lender to convert their loan into an ownership or equity interest in the company or project under certain circumstances. Mezzanine financing is often used to bridge the gap between the amount of senior debt a borrower can secure, and the total amount of capital needed for a project or acquisition.

<< Glossary