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For the manager, what is the difference between convertible bonds and mezzanine financing ?

April 26, 2017bonds convertible difference financing manager Mezzanine

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For the manager, what is the difference between convertible bonds and mezzanine financing ?

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For managers, mezzanine funding optimises their equity stake when the LBO is unwound: the dilution associated with the mezzanine’s share warrants is defined in advance and much less than the dilution associated with the conversion of convertible bonds.