leveraged buyout(redirected from Leverage Buyouts)
Also found in: Dictionary, Thesaurus, Financial.
Related to Leverage Buyouts: Management buyouts
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.
..... Click the link for more information. .