See leveraged buyout. American Banker Glossary
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A transaction used to take a public corporation private that is financed 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 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. Bloomberg Financial Dictionary
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LBO LBO
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► See Leveraged Buyout.
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LBO UK US noun [C] FINANCE
► ABBREVIATION for LEVERAGED BUYOUT(Cf. ↑leveraged buyout): »
LBO deals have a serious chance of becoming the driving force behind the mergers and acquisitions market.
Financial and business terms. 2012.