leveraged buyout

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Related to Leveraged 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.
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References in periodicals archive ?
TPG Capital (formerly Texas Pacific Group) is one of the world's largest private-equity investment firms focused on leveraged buyout, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations.
According to Reuters, leveraged buyout (LBO) defaults may increase at French banks.
While the takeover and buyout frenzy did create a great deal of debt for corporate America, there were many retailers who pulled off successful leveraged buyouts.
Lewis used high-yield debt, or "junk bonds," to acquire the company in a $985 million leveraged buyout, beating out such powerhouses as Citicorp, Pillsbury and Shearson Lehman Brothers.
And many of the targeted firms wound up being taken private in leveraged buyouts.
The upward trend in valuations peaked in 1989, as the economy slowed and loan portfolio problems began to accelerate among those institutions that most heavily supported leveraged buyouts.
With congressional belief that the taxpayer was subsidizing leveraged buyouts, TRA ;86 repealed the General Utilities doctrine.
Any exemption for leveraged buyouts should be carved out by the legislature, not by the judiciary.
Proposals to protect bondholders in leveraged buyouts are made on grounds of promoting both efficiency and fairness.
In Section I, we present a discussion of the theories and evidence for why leveraged buyouts occur.
25 billion leveraged buyout, according to a report from the independent examiner appointed by bankruptcy court in Ohio, where the chain is in Chapter 11 proceedings.