It is not true that the conversion to equity is necessarily at a...

It is not true that the conversion to equity is necessarily at a discount to VWAP. If it was, there is no way that the company wouldn't simply do another CR. Why would you pay large interest repayments AND dilute the equity. Also, depending on the structure, some of a mezzanine structure is typically fixed i.e. interest bearing, and the remaining portion is convertible i.e. essentially a warrant. So there is not full dilution of the balance. However, I acknowledge that that interest payments are typically large since mezzanine debt is subordinate to senior secured debt.