leveraged buyout

The billionaire investor amassed a multimillion-dollar fortune by the 1980s through a number of leveraged buyouts financed by junk bonds sold by Michael Milken.

The detrimental effect of piling debt on a retailer in leveraged buyouts, like those for Payless, Toys "R" Us and Sears, have scared many private equity firms away from making such deals.

On the leveraged loan front, Morgan Stanley said it expects a return in loan issuance next year for M&A and leveraged buyouts, buoyed in part by anticipated Fed rate cuts.

More supply of new junk debt, including that backing recently announced leveraged buyouts, is expected to lift overall issuance volume of bonds and loans to $20 billion or more this month, said some investors.

A challenging financing market for leveraged buyouts amid high interest rates also weighed on the sale process.