Debt mezzanine
The debt mezzanine is a financial term which indicates in a LBO the riskiest debt, whose refunding is subordinated to that of the debt known as senior . It is risked consequently and more remunerated. For example, where the holders of debt senior will touch Euribor + 550 basic points, the holders of debt mezzanine will touch Euribor + 600 to 800 basic points. Moreover, only the half of the interests is generally versed with the carriers of debt mezzanine, other half being capitalized. The titles of debt mezzanine, generally at duration higher than the debt senior, are often supplemented of good of subscription to improve profitability of it.
Its use makes it possible to increase the debt of the company and thus to increase the Action leverage in the purchases by loan.
| Random links: | Dresden Frauenkirche | E7x roads | Trophies of the music in Mali | Francis de Laporte de Castelnau | National park Quebrada del Condorito | National park of Kahurangi | Majeed_Karimi |