Which aspect is not necessarily part of a mezzanine loan?

The aspect that is not necessarily part of a mezzanine loan is the guaranteed interest rate. Mezzanine loans are typically structured to be more flexible than senior debt, and while they may offer higher interest rates due to the increased risk taken on by the lender, the interest rate is not guaranteed. It can vary based on the terms negotiated between the borrower and the lender.

Mezzanine financing generally involves a higher risk and return profile compared to traditional loans, which is why lenders may not offer a guaranteed rate. The structure of these loans often includes provisions for equity conversions or other forms of compensation in the event of default, subordination to senior debt (where mezzanine debt ranks below senior loans in priority), and potential security interests in equity ownership of the borrowing entity. These features are common in mezzanine loans, making them distinctive instruments in the capital stack.