Highly Leveraged Transaction (HLT),
What is The Meaning of Highly Leveraged Transaction (HLT)?
Highly Leveraged Transaction (HLT) can be defined as, High Leverage (HLT) transactions are bank loans to major lending companies. High-interest transactions became popular in the 1980s for financing acquisitions, acquisitions or recapitalization. Transactions in extreme deals are risky as they increase the debt burden of the company and often result in an independent debt / equity ratio. However, the interest income from the transaction was significant for them. Making it attractive to investors and financial institutions.
- The most lucrative transactions are financing agreements with companies that are already in debt.
- Highly profitable transactions are performed for the purpose of retrieving, purchasing or even acquiring another company.
- Investors in highly indebted transactions pay high interest rates to offset the additional risk of high debt.
Literal Meanings of Highly Leveraged Transaction (HLT)
Meanings of Highly:
At some level or at a higher level.
Sentences of Highly
A very dangerous substance
Synonyms of Highly
very, most, really, thoroughly, extremely, exceedingly, particularly, tremendously, hugely, greatly, decidedly, distinctly, exceptionally, immensely, eminently, supremely, inordinately, singularly, extraordinarily, vastly, overly
Meanings of Leveraged:
Strength training using levers.
The relationship between the company's credit equity and the value of the loan in common shares (equity).
Use the borrower's capital for (investment) and estimate that the income will be more than the interest payable.
Use as much as (something).
Sentences of Leveraged
My shovel hit something hard that didn't respond to pressure
Without a clear legal claim to their property, they have features that cannot be used as collateral for a loan.
The organization should use its vital resources
Synonyms of Leveraged
grip, purchase, hold, grasp
Meanings of Transaction:
An example of buying and selling something in a business transaction.
Sentences of Transaction
Delivery date is very important in normal business transactions
Synonyms of Transaction
deal, business, agreement, undertaking, affair, arrangement, bargain, negotiation, treaty, contract, pact, compact, bond, settlement