A type of equity loan, which is used when the borrower does not have enough equity to complete a project. Although it is an equity loan, the mezzanine financing is structured like debt and has higher interest rate than first mortgage interest rate and often either a lookback internal rate of return or an equity particpation.
Late-stage venture capital financing, often the final round prior to an IPO.
usually is a class of investment that is a stage intermediate between venture capital and an initial public offering; or, subordinated debt used in leveraged buyouts (LBOs).
A type of financing that has characteristics of both debt and equity.
Mezzanine debt is subordinated to the senior debt, but superior to preferred equity in the corporation's capital structure. Since mezzanine is superior to equity, the investor bears less risk than with straight equity. Based upon its place in the hierarchy, mezzanine financing is intermediate in risk and should also provide an intermediate return to mezzanine investors.
According to Macdonald & Associates Limited, a senior investment that provides the cash flow of term lending with the capital gains of share ownership. Mezzanine financing generally includes subordinated convertible debt and yield based on preferred shares, often structured with warrants or options.
This is the middle layer of financing in leverage buy-outs. This is usually a type of loan that sits between equity and secured debt.
A financing that is provided, usually by private investors or venture capital firms prior to a company going public, or initiating its next stage of financing.
A type of debt financing ranked between bank loans and other senior debt and equity ownership that often includes subordinated debt or preferred structures with an equity component such as warrants.
it is later stage venture capital financing envisaging low risk. The level of financing is chosen between debt and equity to lower the risk of investment.
Usually the second stage of financing that follows venture capital financing. Often a precursor to an Initial Public Offering of the company's stock. Because of the intermediate nature of the event, the term "mezzanine financing" is used.
A leveraged buyout or restructuring financed through subordinated debt, such as preferred stock or convertible debentures.
Funds raised to cover a short-term costs until additional equity can be raised.
Financing for a company expecting to go public usually within 6 –12 months; usually so structured to be repaid from proceeds of a public offerings, or to establish floor price for public offer.
Refers to the stage of venture financing for a company immediately prior to its IPO. Investors entering in this round have lower risk of loss than those investors who have invested in an earlier round. Mezzanine level financing can take the structure of preferred stock, convertible bonds or subordinated debt.
1. A type of equity financing used in takeovers. It uses preferred shares and convertible securities to make a target firm larger. 2. Financing that combines debt and equity.
The next stage of financing that follows venture capital financing.
This is the type of financing extended to a company when it is believed that company will go public in the short term. · See Also · Bridge Financing
Debt finance which is subordinated and ranks between senior bank debt and equity. It is often fixed rated sometimes with an additional equity-related reward.
Mezzanine financing is somewhere between equity and debt. It is that piece of the capital structure that has senior debt above it and equity below it. There is both equity and debt mezzanine financing, and it can be done at the asset or company level, or it could be unrated tranches of CMBS. Returns are generally in the mid- to high-teens.