Leveraged equity

Leveraged equity

Stock in a firm that relies on financial leverage. Holders of leveraged equity experience the benefits and costs of using debt.

Leveraged Equity

Stock in a publicly-traded company with a significant amount of debt. Leveraged equity carries the same risk as debt; that is, the company must service the debt to remain out of bankruptcy. On the other hand, leveraged equity can increase returns for shareholders when the cost of capital of debt is low.
References in periodicals archive ?
We remain committed to strengthening our financial position and creating leveraged equity returns for our shareholders.
As newspapers - including the Globe and T&G - have seen circulation and revenue decline over the last decade, some media analysts have focused on the role of highly leveraged equity firms buying distressed newspapers only to make harsh cuts that end up damaging editorial quality.
In Table 1, the figures shown for Free & Clear Cash Flows After Fees assume no debt financing, while the figures for Leveraged Equity Cash Flows After Fees assume debt financing.
Executives face considerable risk exposure due to the concentration of their individual wealth tied to a leveraged equity instrument denominated in a single security.
Their credit quality is also being pressured by an increasing strategic focus on long-term lending and investment activities, which is not being balanced by a commensurate build-up of their highly leveraged equity bases,'' said Takahiro Saimen, an analyst at S&P.
Leveraged equity sources seeking to finance buildings leased to high-technology and telecommunications firms located in the suburban corridors will find effective loan-to-values (LTVs) in the 50 percent to 60 percent range, reflecting imputed vacancy factors, required additional collateralization of the leases and some marking to market of the in-place rental income.
Since cash compensation is typically not provided, directors' pay packages are being oriented to highly leveraged equity opportunities.
Spurred by abuses presumably perpetrated by some corporations involved in leveraged equity investments, Congress restricted the deduction to ,/ percent (or 100 percent in a consolidated tax return context) of a distribution.
Material increases in leveraged equity market exposure such as its equity index put derivative portfolio;
MetroPCS shareholders are left with a subordinated minority stake in an over leveraged equity stub.
REITs ranked third, behind leveraged equity investors.
asset) values and yields are based both on mortgage loan yields and leveraged equity yields (on an after-tax basis).