Mezzanine finance is a debt which is often much more expensive as it is unsecured, junior debt (subordinate to senior debtSenior Debt takes priority over all other debt or 'junior' or 'subordinate' debt owed. This means that in the event of bankruptcy or liquidation, senior debt must be repaid before other creditors receive any payment. Senior Debt is often secured by collateral and the collateral can be sold to repay the loan.). Normally, mezzanine debt gives the lender the rights to an ownership stake or equity in the company if the loan is not paid back in time and in full. This can then be sold to recover some or all of the loan
