Can someone give me a web address that will give me more in depth information on
this type of commercial loan. I need to do some quick research . Thanks in advance .

In business financing, a mezzanine loan is usually a loan provided by a non-bank lender {a private investor} that has certain characteristics of equity and is usually more expensive than the bank loan.

This type of financing is used to provide additional cushion for the benefit of the bank lender and makes the deal happen. It is the small version of a subordinated bond offering.

Let me give you a couple of examples:

a- A company is looking for $5MM to fund its inventory and A/R, but the company only has $500,000 of tangible net worth. If a lender gave the loan under that circunstance, then the debt to worth would be 10.00X. However, John Doe Capital might be willing to come in with $1.5MM in mezzanine financing that would be subordinated to the bank lender. This would have two effects: It will reduce the borrowing needs to $3,500M and it will increase tangible net worth to $2,000M resulting in a 1.75X debt to worth. {$3,500M / $2,000M = 1.75 this is because subordinated debt will be added to the book net worth}

b- A company might be in bankruptcy and needs a loan to get out. In this case they would get mezzanine financing in order to qualify for further loans.

You might have noticed a couple of things. First, it is called mezzanine because there is another loan ahead. I think it borrows the name from the architectural definition. They use it because it is a hybrid between debt and equity. Second, it is usually in play only when a company does not qualify for bank lending on its own. Borrowers will only use it as a last resort because interest rates are almost all the time in the double digits. Finally, the mezzanine lender usually requires certain control over the company, which a bank lender normally does not.

I don't know any URLs, but use google to find out more information if needed.

LU from your description that is a portion of a Mez piece used to emmulate factoring for Corporations.

The mez loans that I use daily take a project with several tiers of financing needed inorder to fulfill the client's needs. They do this by structuring several different smaller loans in order to spread thier risk.
I use Mez Debt structures for my developer clients

Mezzanine Debt provides developers with subordinate debt funding up to approximately 90% of the value of the property. This program is attractive to developers who want to retain a greater share of the profits. The first mortgage is typically straight debt and the second mortgage is the higher risk and higher yield instrument, which has either a higher coupon or exit fees. The lender may be the same for both debt instruments or could be two different lenders. This structure is particularly good for developers who want to retain 100% ownership.

Different sources use mez terminology for different situations, dependent upon the structuring of the financing requested. Every Mez structure I've used is specifically created for that project. There isn't a set line of parameters in this type of structuring. It's dependent upon each project independently.

Give us an example of the project, and we can better answer that question....