Highly leveraged transaction

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Highly leveraged transaction (HLT)

Bank loan to a highly leveraged firm.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Highly Leveraged Transaction

A loan to a company or other institution that already has a high amount of debt. A highly leveraged transaction carries a great deal of risk and may increase the likelihood of bankruptcy. A highly leveraged transaction tends to command a large interest rate from the borrower.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
These figures imply that the share of households that applied for credit between 2007 and 2009 and was denied credit at some point was somewhat higher for highly leverage households (36 percent in the top quartile) than for all households in the SCF panel (25 percent).
Negative rating factors include the modest scale of the company's operations, the post-implementation risk related to a recently completed project, the group's thin profitability margin and its highly leverage capital structure.
Highly leverage buyers are also considered among those most prone to financial hardship now that once abundant sources of capital have dried up.
Unfortunately, many landlords are too highly leverage to invest any additional money to upgrade their properties.

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