high-yield financing

High-Yield Financing

The act of financing an activity or broader operation through the issue of junk bonds. These bonds have low credit ratings and have comparatively high risk. As a result, the issuer must pay higher interest rates. High-yield financing is used in some takeover situations where the acquiring company is cash poor.

high-yield financing

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Private-equity backed M&A, which typically relies heavily on high-yield financing, is down 22 percent from Q2 2011.
As liquidity from traditional sources dries up, owners and investors will turn to high-yield financing organizations as viable sources for capital.
Its high-yield financing in 1992 and 1993 clearly exhibited the weakness of the company, sporting coupons at 11 3/4 and 12 percent.
she is the senior person on three-to-five person teams structuring LBOs (leveraged buyouts) and high-yield financing deals ranging from $100 million to $1 billion.
Considerable evidence has been developed on the role of high-yield financing.
Also, other sources of high-yield financing are used.
Ultimately, high-yield financing can enable borrowers to move their projects forward to the point of qualifying for conventional financing, often closing within a week or two.
Savvy high-yield financing firms are comfortable meeting these types of challenges.
With the economy continuing to recover from the financial crisis, we are seeing more leveraged and high-yield financings, more cross-border transactions, more distressed investing, and more risk-taking as lenders and investors look for new avenues for growth.
High-yield investments - The SEC believes investments in high-yield financings or non-investment grade loans offer potentially greater returns and pose greater risks than other investments.