leverage up(redirected from Leveraging Up)
To increase a firm's amount of debt. In general, a firm leverages up by issuing a bond, often in order to finance an expansion of operations. A publicly-traded company may leverage up to repurchase its own stock, which usually increases the share price; this was a relatively common way to discourage hostile takeovers in the 1980s.
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To increase the portion of debt in a firm's capital structure by issuing debt and using the proceeds to repurchase stock or by financing any new expansion through debt. In the mid-1980s, firms decided to leverage up in an attempt to improve the market price of their stock, thereby fending off takeover attempts.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.