Which statement is false regarding mezzanine debt?

A. They are subordinate to senior debt but have priority over both preferred and common stock.
B. They are often unsecured, and carry higher yields than ordinary debt.
C. They are most commonly utilized in start-up or early-phase financing.

Correct Answer: C

Mezzanine loans are most commonly utilized in the expansion of established companies rather than as start-up or early-phase financing.