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 ?
And Liverpool were within hours of administration when previous US owners Tom HicKs and George Gillett left them saddled with debts of pounds 200m following their leveraged buy-out.
"We believe that the underlying facts support a prima facie cause-of-action tied to the leveraged buy-out," says McCormick.
For retailers in coming years, more conservative times should reduce the number of poorly-financed transactions or leveraged buy-outs. As for shoppers, loyalty - and spending - may dwindle further.
Whether you could see private equity getting involved or an investor from outside the UK it's very questionable, because if you were going to buy out Ladbrokes a high level of debt is likely to be used and the appetite for leveraged buy-outs isn't what it was five years ago.
Chicago-based Linden specialises in leveraged buy-outs in the mid-market segment, focusing on healthcare and life science companies.
The complex financing arrangements and the syndication of debt (to de-risk a bank's individual exposure) have been increasingly used in leveraged buy-outs and leveraged loan situations over the last ten years.
Carolinians showed clearly that Romney was not looking conservative enough according to many analysts even though he had been painted as a corporate enigma wrapped in leveraged buy-outs and a stupendous Wall Street portfolio.
The recent history of Bulgarian Telecommunications Company (BTC) is a textbook case of leveraged buy-outs gone wrong.
Gaillard, giving evidence to the culture, media and sport committee in London, said: "The leveraged buy-outs for many clubs end in disaster - just take Liverpool where you have owners who came, contracted debt, bought out the previous owners and saddled the club with the debt.
They are not the only club who have a substantial level of debt, and Taylor believes legislation is required to prevent the huge leveraged buy-outs undertaken by the likes of former Liverpool owners Tom Hicks and George Gillett, who in the latter stages of their reign last year were paying pounds 40m a year in interest fees.
They are businessmen and in the modern world that means leveraged buy-outs, which for those of us who speak English rather than managementese, means they borrow to the hilt to buy something they hope will make enough money to pay the interest on the loans - after paying them a hefty wedge of course - make a profit and increase in value.
The negativity hammered into fans after years of reading about leveraged buy-outs and despatches from a civil war, has travelled to the pitch.