leveraged company

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Leveraged company

A company that has debt in its capital structure.

Leveraged Company

A company that uses any debt to help finance its operations. Most companies are leveraged to some degree, but others take on so much debt they have difficulty servicing it and may file for bankruptcy. Highly leveraged companies often have more volatile profits than other companies. Some analysts, however, dispute the idea that leverage (or the lack of it) affects a company's performance in any way. See also: Capital Structure, Capital Structure Irrelevance Principle.

leveraged company

A company that uses borrowed money to help finance its assets. Leveraged companies often have more volatile earnings than firms that rely solely on equity financing. This volatility is offset, however, by the possibility of a higher return to stockholders if the firm is able to earn more on its assets than the cost of the money used to finance those assets.
References in periodicals archive ?
According to experts, unless the country's economic growth takes bigger strides, many highly leveraged companies may continue to battle debt.
Vitrano noted that he, chairman and chief executive officer John Standley, and president and chief operating officer Ken Martindale had experience managing highly leveraged companies when they came to the drug chain in 2008 from regional grocer Pathmark Stores Inc.
She will help Miller Buckfire become an even more formidable leader in advising highly leveraged companies.
Alcentra has substantial experience lending to leveraged companies in the UK and across Europe through broadly syndicated senior and mezzanine facilities and directly originated senior and mezzanine transactions.
Leveraged lending jumped 49 per cent to $140 billion as riskier, more indebted leveraged companies focused on amending and extending existing loans and refinancing them in the high-yield bond market when possible.
TMK remains one of the most leveraged companies in the Russian metals & mining universe, and we expect 2011E LTM net debt/EBITDA of 3.
As the next phase pans out, less leveraged companies will be less dependent on bank finance and should have more robust balance sheets; an attractive proposition in the search for value.
As a result, I anticipate a rotation away from the stocks of highly leveraged companies with weaker balance sheets, to stocks of well-run businesses who can grow cash flow and earnings.
While many of these highly leveraged companies have generated free cash flow through the downturn, these companies will remain dependant on external sources of capital, requiring refinancing/negotiating with lenders.
While equity markets around the world have experienced a tumultuous quarter, Sharia investors continue to be shielded to some extent by the exclusion from their portfolios of financial stocks and other highly leveraged companies, which do not satisfy the strict compliance criteria associated with Islamic law,"said Standard & Poor's Index Services vice president Alka Banerjee.
TMA members also see debt default rates increasing in the near term for underperforming, highly leveraged companies.
Two of the most highly leveraged companies in the industry are Gannett Co.