Definition funding a company with more debt than would be considered normal for that company or industry Reference "Giddy.org > What is Leveraged Finance? Prof. Ian Giddy, New York University, http://giddy.org/dbs/structured/LevFinarticle.htm [27.1.2010]"
Comment More-than-normal debt implies that the funding is riskier, and therefore more costly, than normal borrowing. As a result, levered finance is commonly employed to achieve a specific, often temporary, objective: to make an acquisition, to effect a buy-out, to repurchase shares or fund a one-time dividend, or to invest in a self-sustaining cash-generating asset.