leveraged buyout


Also found in: Dictionary, Thesaurus, Financial, Wikipedia.

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.
.
References in periodicals archive ?
Shortly before the leveraged buyout, Turley asked his people to undertake a massive research effort, one designed to foster greater understanding of the chain's markets, customer and positioning.
In a leveraged buyout transaction, how should NEWCO's investment in OLDCO be allocated to individual assets and liabilities of OLDCO if a portion of NEWCO's investment in OLDCO is valued at predecessor (historical cost) basis.
In general, leveraged buyout funds by policy do not put more than 25 percent to 40 percent of their funds into a single deal.
initiates the largest off-shore leveraged buyout in business history with his $985 million acquisition of Beatrice International Foods.
The case is the first in which an independent examiner has been appointed to investigate a junk bond-financed, leveraged buyout.
It also comes at a time when leveraged buyouts are few and far between, thanks to the collapse of the junk bond market in 1989.
Tusher had to sell his options at fair market value under the terms of the company's 1996 leveraged buyout.
Pension funds and endowments typically invest their money with intermediaries, such as venture capitalists, leveraged buyout firms and strategic block investors.
Under discouraging circumstances, AMF sold the unit to management in a leveraged buyout transaction at an attractive price.