IFO4
Loading...Subordinated debt or preferred equity that sits below senior debt and above common equity in the capital stack, typically with both fixed coupon and equity participation features. Mezzanine instruments are used to bridge financing gaps in leveraged buyouts and growth transactions where senior lenders cap their exposure. The federation requires mezzanine instruments to be reported with their full economic terms, including PIK toggle provisions, warrant coverage, and any change of control provisions, under MEV-Annex:4.1. Mezzanine reclassification between debt and equity is footnoted with rationale.
Italian for middle floor; the financial sense entered English via mid twentieth century real estate finance and spread through the leveraged buyout era.
Federation members publish full mezzanine terms quarterly. PIK accruals are reconciled to the carrying balance under MEV-Annex:4.1. Warrant coverage is included in the fully diluted share table.
@misc{ifo4_glossary_mezzanine,
title = {{Mezzanine}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{mezzanine}}},
year = {2026},
url = {https://ifo4.org/glossary/mezzanine},
note = {Category: Capital; key: Mezzanine}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.