Debt Stack
The layered structure of debt in a deal, from senior secured to mezzanine to subordinated. Each layer has a different cost, priority in repayment, and risk. Structuring the stack well is a key driver of return.
Example
A typical LBO stack has a first lien senior term loan, a second lien, and a mezzanine layer.
Related terms
Missing a term, or want to suggest one we should add? Talk to Adrian Scott →