Mezzanine financing is a hybrid form of financing provided to companies. It is characterized by having cost profile, priority (seniority) and other features somewhere between those of senior debt and equity, thus filling the gap between the two. As such, mezzanine financing is structurally subordinate in priority of payment to senior debt. At the same time, it is senior in rank to common stock or equity (See figure below). It is typically considered to be debt, although being a hybrid form of financing, it can be more-equity like than debt-like in some cases. Mezzanine financing may take the form of convertible debt, senior subordinated debt or private “mezzanine” securities (debt with warrants or preferred equity). In the broader sense, the term “mezzanine financing” is also sometimes used when referring to “junior” or “junk” or any other type of subordinated debt.