Mezzanine Financing
Mezzanine financing is a form of subordinated debt used to fund growth or acquisitions. It sits between senior debt and equity in a company's capital structure and often includes higher interest and options to convert to equity or receive warrants.
Example: In a private-equity deal, a company might use mezzanine financing to cover a portion of the purchase price, with the lender receiving a note plus warrants as compensation for higher risk.
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