leveraged

leveraged
leveraged lev‧er‧aged [ˈliːvərɪdʒd ǁ ˈle-, ˈliː-] adjective FINANCE
1. a leveraged company is financed by a high level of borrowing in relation to its share capital (= the money it has from selling its shares ) :

• The company is profitable even though it is leveraged much more than most small businesses.

• It has carried a more heavily leveraged balance sheet than most other oil companies, with debt making up about 47% of its overall capital.

2. leveraged deal/​purchase/​transaction etc a deal etc in which borrowed money is used by the buyer to pay for something:

• The market for bank loans for leveraged transactions has grown weak.

* * *

leveraged UK US /ˈliːvərɪdʒd/ US  /ˈlevərɪdʒd/ adjective FINANCE
used to describe a company or organization that owes a large amount of money in relation to its value: »

Like other theater chains, it will be a highly leveraged company, carrying about $550 million in debt.

Compare HIGHLY GEARED(Cf. ↑highly geared)
used to describe an investment which has been bought with a large amount of borrowed money: leveraged deal/purchase/transaction »

They will have to reduce costs significantly to pay the borrowings to finance the highly leveraged deal.

Compare GEARED(Cf. ↑geared)
See also OVER-LEVERAGED(Cf. ↑over-leveraged)

Financial and business terms. 2012.

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Look at other dictionaries:

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  • leveraged buyout — leveraged buy·out / bī ˌau̇t/ n: the acquisition of a company usu. by members of its own management using debt to finance the purchase of equity with debt to be paid by future profits or sale of company assets Merriam Webster’s Dictionary of Law …   Law dictionary

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  • leveraged buy out — (LBO) A transaction where a purchaser uses the assets of the corporation to be acquired (target) as collateral for the loan to buy the stock of the target. LBOs stand a significant risk of bankruptcy because, after the transaction, they have… …   Glossary of Bankruptcy

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