leveraged buyout

American  

noun

1. the purchase of a company with borrowed money, using the company's assets as collateral, and often discharging the debt and realizing a profit by liquidating the company. LBO

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leveraged buyout British  

/ ˈliːvərɪdʒd /

noun

1.  LBO.  a takeover bid in which a small company makes use of its limited assets, and those of the usually larger target company, to raise the loans required to finance the takeover

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leveraged buyout Cultural  

1. The purchase of a company mainly with borrowed money on the expectation that the purchaser can repay from the company's future profits or by selling its assets. Buyers sometimes raise the money by issuing junk bonds.

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Example Sentences

Also at issue is the Middle Eastern money the Ellison family has been expecting to pull off Paramount’s leveraged buyout of its larger entertainment company rival.

From Los Angeles Times

A combined Paramount-Warner would carry nearly $80 billion in debt, a legacy of the proposed leveraged buyout and the mergers that came before it.

From Los Angeles Times

Is the largest leveraged buyout ever in doubt?

From The Wall Street Journal

Software is by far the largest industry exposure for many BDCs, with most software debt stemming from financing leveraged buyouts by major private-equity firms.

From Barron's

Still, the new company will need to grapple with $79 billion in net debt at close, making it one of the largest leveraged buyouts in history.

From Los Angeles Times

Related Words

• hostile takeover