leveraged buyout

(redirected from Leveraged buy-outs)
Also found in: Dictionary, Thesaurus, Financial.
Related to Leveraged buy-outs: Management buyout

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.
The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/
References in periodicals archive ?
But in written parliamentary evidence, groups liKe the Wrexham Supporters' Trust have since claimed Mr Moss and Mr DicKens paid pounds 3.3m for the club as part of a "leveraged buy-out".
This arises because PEFs finance buy-outs by raising capital from pension and insurance funds (around 80% of PEF business is leveraged buy-outs - LBOs).
Venture capital interest, leveraged buy-outs, reconsolidation of debt, Graeme Souness and his big gay 'tache...what does it all mean?
* In one of the biggest-ever leveraged buy-outs, Kinder Morgan, an energy distributor and pipeline operator based in Houston, accepted a sweetened $15 billion offer from a consortium of private-equity groups and investors led by its chief executive and co-founder, Richard Kinder.
These type of venture capitalists specialize in leveraged buy-outs and are now prominent in driving acquisitions and mergers throughout western European.
Weiner has considerable expertise in coordinating the real estate aspects of multi-property, multi-jurisdictional projects, including leveraged buy-outs and other corporate acquisitions.
In recent years, PAI Partners has led several of the largest European leveraged buy-outs of sector-leading companies.
Now that the dust has settled and "the deal" has been done, the Jefferson Smurfit Group (JSG) is back to the day-to-day business of doing business without the stress and distraction of dealing with one of the largest leveraged buy-outs the industry has witnessed.
Venture capital and management-led, leveraged buy-outs. Journal of Business Venturing, 7, 47-71.
(not to mention bond-issues, leveraged buy-outs and so on)--were taking place.
With one glaring exception, however, he portrays Gillette's unsolicited suitors as "raiders," "predators," "bottom feeding New York speculators," and "sharks." (The exception: the "professional and respectful" contingent from Kohlberg, Kravis, Roberts, from whom Gillette would acquire Duracell, still one of its major units.) McKibben seems unaware of the all the nagging quantitative evidence suggesting that hostile takeovers and leveraged buy-outs - even, in many instances, LBOs financed with junk bonds - often restored competitiveness and profitability to languishing giants like Gillette.