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Sir can you please explain me in simple language with example what is Mezzanine debt.
ThanksMezzanine debt is half way between secured debt (which comes first for payout if the company goes bankrupt) and unsecured debt (which comes after mezzanine debt if the company goes bankrupt).
Thank you so much sir for making it so simple. Can u please give example as well. Thanks
There is no sort of specific example – it all depends on the agreement when the money is borrowed. Usually it will be money borrowed from a bank or other lender.
Usually with mezzanine debt there is no security given against the debt, so debts secured on assets is paid off first. As a result, the interest charged will usually be higher than that charged on secured debt.
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