USA
Also known as mezzanine debt.
Debt that ranks in priority behind senior debt but ahead of trade creditors or equity; often unsecured, high yield, subordinated debt and commonly convertible into equity of the borrower. This debt is typically subject to a bullet repayment and possibly prepayment premiums. Mezzanine loans are a more expensive financing source for a company than secured debt or senior debt because they are riskier to the lender.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.