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Mezzanine financing

Mezzanine financing is a hybrid of debt and equity financing that grants the lender with the right to convert to an equity interest. Mezzanine capital is often used to extend the borrowing capacity of the company or the project in the situations when existings funds cannot cover the operational expenses. Mezzanine financing is often seen as an alternative means for bank loans that are not considered as an option due to different reasons. Mezzanine financing is treated as equity on the company’s balance sheet.