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 ?
Regulators appear to have made an impact in this regard as the average leverage on LBO deals completed through September 2015 is down to 6.
The existing creditors face a real loss if the LBO is a failure and the highly leveraged target does in fact go into bankruptcy.
Our analysis reveals that RLBO firms have undervalued equity at the time of the LBO and their valuation improves significantly after the private period.
being sent, already announced their intentions to vote against the LBO.
decided on a $2 billion LBO to be managed by Insight Venture Partners before Dell swooped in to offer $2.
We offered TurfTV data to SIS for use in its UK- and Irishmanaged services to TurfTV-subscribing LBOs at no charge, as is our standard policy.
Average LBO leverage ratios have hovered above seven-times EBIT-DA this year compared with about six times EBITDA in 2004, said Margaret Taylor, vice president and senior credit officer with Moody's Investor Service.
European private equity investor Industri Kapital announced on Monday (11 December) that it is selling Consolis to LBO France.
LBO Wire, a product of Dow Jones Information Services, is a daily e-mail newsletter covering the buyout market for executives at private equity firms, and their investors, bankers, lawyers and other professionals in the industry.
The collapse of share prices over the past two years signals this loss of faith, which has created another problem: depressed prices make chemicals companies vulnerable to hostile bids from LBO firms or stronger competitors.
The transitory nature of leveraged buyouts is also noted by Kaplan (1991) who reports that, for a sub-sample of 183 LBOs completed between 1979 and 1986, the median time spent as a private firm is 6.
He was able to perform a classic LBO like the white guys.