Mezzanine Financing

January 20, 2014  |     |     |   0 Comment

Mezzzanine financing is usually convertible debt provided to an existing business in order to help it grow its business. If the borrower defaults, the lender can convert his debt into equity in the business.

This is junior debt relative to senior debt offered by traditional banks. The financing is usually required very quickly by businesses and given its subordinate debt status, it has high interest rates of up to 30% or higher. Some businesses use mezzanine debt for operations prior to seeking bigger loans and more traditional financing from banks.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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