Highly Leveraged Transaction - HLT
- Highly Leveraged Transaction - HLT
- A bank loan to a highly leveraged company. HLTs can be thought of as similar to junk bonds as they both face default risk, but HLTs are more secure and have stronger debt covenants due to their structure.
HLT guidelines are set out by the U.S. Office of the Comptroller of Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation.
For a loan to be classified as an HLT it must meet the following guidelines:
· loan financing used for buyouts, acquisitions and recapitalizations.
· loan financing which doubles the borrower's liabilities and results in a
leverage ratio greater than 50% or increase the leverage ratio higher than 75%.
· loan financing designated as an HLT by the syndication agent.
· loan financing to subsidiaries of highly leveraged companies, even if the subsidiary
does not meet the other HLT definitions.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Highly leveraged transaction (HLT) — Bank loan to a highly leveraged firm. The New York Times Financial Glossary … Financial and business terms
highly leveraged transaction — ( HLT) Bank loan to a highly leveraged firm. Bloomberg Financial Dictionary … Financial and business terms
Leveraged buyout — A leveraged buyout (or LBO, or highly leveraged transaction (HLT), or bootstrap transaction) occurs when a financial sponsor acquires a controlling interest in a company s equity and where a significant percentage of the purchase price is… … Wikipedia
HLT — ( highly leveraged transaction) Bank loan to a highly leveraged firm. Bloomberg Financial Dictionary … Financial and business terms
HLT — highly leveraged transaction сделка ( операция) с высокой долей кредита (заимствованных средств) … Финансово-инвестиционный толковый словарь
HLT — An acronym for Highly Leveraged Transaction. A US regulatory classification of risky transactions … International financial encyclopaedia
Операция с высокой долей заемных средств — банковский кредит, предоставленный компании с высокой долей заемных средств. По английски: Highly leveraged transaction Синонимы английские: HLT См. также: Банковские кредиты Финансовый рычаг Финансовый словарь Финам … Финансовый словарь
