Mezzanine Finance

Mezzanine Finance
   A type of funding capital midway between debt and equity in that it offers a higher interest rate than senior debt, but provides a lower longer-term return than equity. This allows large deals to be structured in the most suitable method for investors and lenders. Often used in management buyouts.

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mezzanine finance UK US noun [U] (also mezzanine financing)
FINANCE a form of lending to businesses in which a company that is borrowing pays a higher rate of interest than on other loans but has longer to pay back the debt, which may also be changed into shares in the company: »

The 50-50 joint venture with Bank of Scotland will comprise about 20 per cent equity and the rest in debt and mezzanine finance.


Financial and business terms. 2012.

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Look at other dictionaries:

  • mezzanine finance — A term used to describe the element of a development capital package which carries a risk/return profile higher than senior debt but lower than equity. It is usually in the form of preference shares or subordinated loan stock. Easyform Glossary… …   Law dictionary

  • mezzanine finance — noun Finance usu for the takeover of a large company, consisting of an unsecured, high interest loan, sometimes with a share option for the lender • • • Main Entry: ↑mezzanine …   Useful english dictionary

  • mezzanine finance — /ˌmetsəni:n faɪnæns/ noun finance provided to a company after it has received start up finance COMMENT: Mezzanine finance is slightly less risky than start up finance, since the company has usually already started trading; it is, however,… …   Dictionary of banking and finance

  • mezzanine finance — Finance, usually provided by specialist financial institutions, that is neither pure equity nor pure debt. It can take many different forms and can be secured or unsecured; it usually earns a higher rate of return than pure debt but less than… …   Accounting dictionary

  • mezzanine finance — /mɛzənin ˈfaɪnæns/ (say mezuhneen fuynans) noun a form of borrowed finance which is behind senior debt in the ranking of claims for repayment in the case of default, liquidation, etc., but ahead of equity; often secured by a second mortgage.… …  

  • mezzanine finance — 1) Finance, usually provided by specialist financial institutions, that is neither pure equity nor pure debt. It can take many different forms and can be secured or unsecured; it usually earns a higher rate of return than pure debt but less than… …   Big dictionary of business and management

  • Mezzanine capital — Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company s assets which is senior only to that of the common shares. Mezzanine financings can be structured either as debt… …   Wikipedia

  • Mezzanine-Finanzierung — Mezzanine Kapital oder Mezzanine Finanzierungen (abgeleitet aus der Architektur i. S. v. Zwischengeschoss) beschreibt als Sammelbegriff Finanzierungsarten, die in ihren rechtlichen und wirtschaftlichen Ausgestaltungen eine Mischform zwischen… …   Deutsch Wikipedia

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  • Mezzanine-Kapital — oder Mezzanine Finanzierungen (abgeleitet aus der Architektur im Sinne von Zwischengeschoss) beschreibt als Sammelbegriff Finanzierungsarten, die in ihren rechtlichen und wirtschaftlichen Ausgestaltungen eine Mischform zwischen Eigen und… …   Deutsch Wikipedia

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