Is Mezzanine Debt Secured?

Mezzanine debt is the middle layer of capital that falls between secured senior debt and equity. This type of capital is usually not secured by assets, and is lent strictly based on a company's ability to repay the debt from free cash flow.

Are mezzanine loans secured?

A mezzanine loan is a type of subordinate loan that is indirectly, rather than directly, secured by real property.

Is mezzanine debt secured or unsecured?

Mezzanine loans are subordinate to senior debt but have priority over both preferred and common stock. They carry higher yields than ordinary debt. They are often unsecured debts. There is no amortization of loan principal.