Definitions for "Mezzanine debt"
Keywords:  senior, warrant, priority, equity, rank
Mezzanine debt capital generally refers to that layer of financing between a company's senior debt and equity. Structurally, it is subordinate in priority of payment to senior debt, but senior in rank to common stock or equity. In a broader sense, mezzanine debt may take the form of convertible debt, senior subordinated debt or private "mezzanine" securities (debt or preferred equity).
Refers to non-conventional debt that has a greater element of risk than secured debt but has less risk than equity.
Debt which ranks and is repaid after senior debt but before junior/institutional loan stock. Generally carries an option, warrant or redemption fee, which tends to distinguish it from senior debt reflecting the inherent risk nature of such a debt instrument.