05.07.2009
Dealers in securities in their own names on the Stock Exchange.
A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies. Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range
A description of the behavior of buyers and sellers in that market
Mergers and acquisitions in the energy industry remained robust even during the financial turmoil in the second half of 2007, but activity for some types of deal is likely to be weaker in 2008. Takeovers by companies from emerging markets such as China and India slowed in 2007 and most of the biggest deals involved financial buyers or significant debt financing. Both of those factors are likely to be less evident in 2008 because of tighter credit conditions
Date for settlement