See Also: Leveraged buyout (LBO)(money)
Leveraged Buyout(money)
Leveraged buyout (LBO)(finance)
leveraged buyout(dictionary)
Reverse leveraged buyout(finance)
Reverse leveraged buyout(money)
Buyout(money)
buyout(dictionary)
Management buyout (MBO)(money)
management buyout(dictionary)

Leveraged buyout (LBO) (money)


Definition: [crh] A transaction used to take a public corporation private that is financed Definition: through debt such as bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment-grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an LBO through either the purchase of the Definition: debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund that specializes in such investments.