What is Mezzanine Debt?
There are forms of capital that combine elements of debt and equity. An example of this is mezzanine debt. In this video, Tim Skeet discusses the structure of mezzanine debt and why it attracts investors.
Overview
Mezzanine debt is a flexible form of deeply subordinated debt, often used in leveraged buyouts, that combines elements of debt and equity.
Key learning objectives:
What is mezzanine debt?
How is mezzanine debt used in LBOs?
What are equity kickers?
What is a PIK feature?
Summary
Expert
Tim Skeet
Banker with more than 35 years experience in the financial markets. Tim has been an ICMA board member and an ECBC steering committee member. Tim is a Freeman of the City of London.
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