Mezzanine capital

Definition:

In a company's capital structure, mezzanine capital is senior to common shares but junior to secured debt or senior debt. Mezzanine capital refers to subordinated debt or preferred equity and is usually more expensive for the issuer than issuing senior debt.

Mezzanine debt
See: Mezzanine capital

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Funding

Used to describe the refinancing of a debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of capital. See also:... Read More

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