Traditional mezzanine financing is generally structured as subordinated debt with warrants, having a term of not more than 3 years and deployed with little due diligence on the part of the lender/investor. It is priced fairly aggressively with the funding source seeking a return rate of 20% to 30%.
Another definition is in terms of the capital structure and not in terms of time and generally structured as subordinated debt with warrants or preferred stock.

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