Talk:Mezzanine capital

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[edit] Attention & Cleanup

Currently as this article stands, it is an advertisement for JPMorgan Partners MP. Mezzanine funding/capital is more than one company, and the focus on JPMP shouldn't dominate the article. It's in severe need of attention and cleanup. —ExplorerCDT 18:19, 25 Dec 2004 (UTC)

[edit] Possibly useful

This is text I salvaged from what is now Mezzanine (architecture):

Mezzanine can also mean a form of finance sometimes used in specific financial transactions. It falls into the category of Junior Debt because it is structured in a way to be structurally or contractually subordinated to the Senior Bank Debt (primarily loans from banks). This means that in a bankruptcy, the Mezzanine lenders have recourse to the company's assets only after the Senior Lenders' claims have been satisfied. It compares to High Yield Debt in that it is a private instrument, structured as a loan, as opposed to a publicly traded bond (still subordinated to the Senior Lenders). It is used in to fund highly leveraged transactions, primarily Leveraged Buy-Outs (LBOs) or Leveraged Re-Capitalisations. The differential between Mezzanine Returns and traditional returns on borrowed capital is explainable as a function of i) the higher financial risk borne by the investor by means of a higher total debt quantum and leverage, and ii) the subordinated nature of the financial claim on the Company's assets. See also globalfinanceonline.

Algae 10:29, 17 December 2005 (UTC)