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BankNet

BankNet
Resources for bankers

Leveraged Finance

In general, leveraged finance is a credit package that funds the acquisition or recapitalization of an entity or part of an entity. The entity may be privately or publicly held, and it holds the acquisition debt on its books.

References
EC = Examining Circulars
OCC=Bulletin

Highly Leveraged Transactions (EC 245, December 1998)
Provides examiner guidance for assessing the adequacy of a bank’s policies, procedures, and controls in financing highly leveraged transactions