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Glossary » Mezzanine Loan

Mezzanine Loan

A second lien type of debt financing that is typically used to finance the expansion of existing properties. Mezzanine financing is basically debt capital that is subordinated to senior financing. Mezzanine financing can be both secured and unsecured debt. Some forms of mezzanine financing give the lender a rights to convert to an equity interest in the property if the loan is not paid back in time and in full.


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