Mezzanine Capital

Mezzanine Capital or mezzanine debt refers to unsecured, high yield, subordinated debt, preferred stock that represents a claim on a company's assets that is only senior to the company’s shareholders. Mezzanine capital often includes an equity part, usually warrants, attached to the debt obligation. The interest payments for mezzanine capital are higher due to an increased chance of not getting repaid in case of default.