leveraged buyout


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leveraged buyout,

the takeover of a company, financed by borrowed funds. Often, the target company's assets are used as security for the loans acquired to finance the purchase. The acquiring company or group then repays the loans from the target company's profits or by selling its assets. Many leveraged buyouts have been financed through junk bondsjunk bond,
a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history.
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References in periodicals archive ?
Most involve leveraged buyouts of middle-market companies with private-equity firms and mezzanine lenders.
It is believed that many companies that were targeted in leveraged buyouts are deeply indebted now.
But even if the industry does lose one of its most colorful characters--as well as one of its best CEOs over the years-a deal that would involve Ireland's largest-ever leveraged buyout would also value Smurfit's stake in JSG at well over Eur 200 million (US$ 188 million).
103 TC 345 (1994), Fort Howard borrowed over $2 billion to finance a leveraged buyout of its stock.
Under each structure, the reduction in taxes to the leveraged buyout is expressed as a percentage of the acquisition premium and also as a present value at the time of the buyout.
A leveraged buyout typically consists of the purchase of a corporation, the "target," from its shareholders by an investment entity, known as the "acquiror.
a private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that one of its affiliated portfolio companies, Hunnebeck Group GmbH, ("Hunnebeck"), has been sold for 140 million euro in cash to Harsco Corporation , which is a leading international provider of industrial services and products.
1987: Reginald Lewis makes history by completing a $985 million leveraged buyout of Beatrice International Foods.
In a leveraged buyout (LBO), shareholders earn a substantial premium for their shares over recent trading prices.
This month's column discusses consensuses reached by the FASB Emerging Issues Task Force EITF or task force) concerning accounting for changes to fixed employee stock option plans resulting from an eqity restructuring, and concerning allocating basis to individual assets and liabilities acquired in certain leveraged buyout transactions.
said, "We would like to thank the Dura-Line management team for the great contribution that they have made to the success of our leveraged buyout funds and wish them every success with Audax Group.
announced that it provided Riverlake Partners, LLC, a private equity buyout fund focused on traditional manufacturing industries, acquisition financing to complete its leveraged buyout of the Decorative Systems Division of Pressac plc, a UK-based public company.