Mezzanine debt | Practical Law

Mezzanine debt | Practical Law

Mezzanine debt

Mezzanine debt

Practical Law UK Glossary 0-107-6843 (Approx. 3 pages)

Glossary

Mezzanine debt

Debt finance that ranks in priority behind senior debt but ahead of trade creditors or equity; often secured and commonly convertible into equity of the borrower. There is generally a bullet repayment and there may be early prepayment premiums. Mezzanine loans often benefit from share or equity warrants which give mezzanine lenders a share in any equity upside in the transaction.