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.

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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.

Look at other dictionaries:

  • leveraged — USA In the context of finance, the relationship of debt to equity in a borrower s capital structure. The higher the borrower s debt, the more highly leveraged a borrower is said to be. In practice, the term “leveraged” is used when the amount of… …   Law dictionary

  • leveraged — ˈlev(ə)rijd, ˈlēv adjective 1. : having a high proportion of debt relative to equity mismanaged, unwisely leveraged, and highly illiquid corporations N.A.Bailey 2. of the purchase of a company : made with borrowed money that is secured by the… …   Useful english dictionary

  • leveraged — adjective Date: 1953 1. having a high proportion of debt relative to equity 2. of the purchase of a company made with borrowed money that is secured by the assets of the company bought < a leveraged buyout > …   New Collegiate Dictionary

  • leveraged —    involving excessive borrowing    Especially where a predator takes over a corporation incurring debt which he hopes to service or repay out of the victim s assets:     Anyway, this investment banker specializes in leveraged buyouts ; it s the… …   How not to say what you mean: A dictionary of euphemisms

  • leveraged — le·ver·age || levÉ™rɪdÊ’ / lɪːv n. action of a lever; mechanical power supplied by a lever; influence, ability to affect or alter people or circumstances; use of borrowed money to increase the return on an investment v. use one s influence… …   English contemporary dictionary

  • leveraged — adjective use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable. → leverage …   English new terms dictionary

  • leveraged — lever·aged …   English syllables

  • leveraged — /ˈlɛvərɪdʒd/ (say levuhrijd) adjective (of a company, financial transaction, etc.) demonstrating a high ratio of debt to equity …   Australian English dictionary

  • leveraged — / li:vərɪdʒ/ adjective using borrowings for finance …   Dictionary of banking and finance

  • Leveraged Buyout — Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l entreprise… …   Wikipédia en Français


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