The mezzanine debt is in the middle between the senior debt, which isnormally secured, and the equity at the bottom. Mezzanine securities are structured as subordinated debtwhich carry a fixed coupon-between 12-14% - and an equity kicker-in the form of warrants. Themezzanine debt is generally unsecured ranks junior to bank loans and usually high yield bonds and seniorto the equity.The mezzanine market really took off in the early 80s.