I was looking at a capital structure that was comprised of 2 tranches of senior debt and 3 tranches of mezz below it. The interesting part is that the 1st piece of mezz after the 2 senior tranches has the lowest interest rate in the entire capital structure 6.10%(mezz 1), while the 2 senior above it have 7.04% (sr 1&2) interest rates. The other 2 Mezz pieces below the 1st Mezz rightfully have higher rates at 7.10%(mezz 2) and 8.41%(mezz 3). Can anyone explain how this is possible? To my understanding the more senior you are in the capital structure the lower the cost of debt. In this case the Mezz 1 which isn't senior to the 2 tranches above it has the lowest cost of debt.