Terms Beginning With 'l'

Leveraged Loan

  • January 22, 2020
  • Team Kalkine

It is a type of loan that is extended to firms or individuals already having a poor credit history and/or considerable amounts of debt. These loans are substantially riskier than traditional loans and, as such, lenders usually demand a higher interest rate to signify the bigger risk.

Leveraged loans are used to support mergers and acquisitions deals, to refinance the existing debt, to change a company’s balance sheet and for general corporate purposes.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK