Debt Financing
Debt financing refers to the borrowing of funds in order to finance a purchase, acquisition or expansion. Debt financing applies to both individuals as well as to businesses and corporations.
debt financing
raising money by selling bonds, notes, or mortgages or borrowing directly from financial institutions.
Definition of
debt financing
Finance
raising of capital by long-term borrowing the activity of raising capital from long-term borrowing such as the sale of bonds or notes.
Debt Financing
The raising of capital by the issuance/sale of debt instruments such as bonds....(Read more)
Debt Instrument
A promise in writing to repay a debt. For example a bond, bill, commercial paper, banker's acceptance or note. ...
Debt Financing
Raising loan capital through the creation of debt by issuing a form of paper evidencing amounts owed and payable on specified dates or on demand.
Seed Capital ...
Debt Financing
The raising of money by loans and borrowing directly from financial institutions, providing increased financial leverage. Interest may be tax deductible.
Debt Financing
Raising money for working capital or for capital expenditures by selling bonds, bills or notes to individual or institutional investors.
Debt Financing:
The raising of capital through the creation of corporate debt by issuing a form of document (bond, note, debenture) evidencing the amount owned and payable on specified dates or on demand.
Debt Issues: ...
Debt financing. The use of borrowed money to finance a business.
Due diligence investigation.
Debt Financing: Raising capital by selling debt instruments such as bonds, bills or notes.
Debt financing -- tangible assets can be provided as collateral in attracting debt capital, which typically require a lower rate of return than equity capital ...
Debt Financing - The provision of long term loans to small business concerns in exchange for debt securities or a note.
Deduction - An item or expenditure subtracted from adjusted gross income to reduce the amount of income subject to tax.
Debt Financing
The payment, in whole or in part, for a capital investment with borrowed funds.
Debt Service
The amount of money required for the payment of current interest and principal on a long-term debt.
With debt financing, equity investors receive returns out of proportion to the corporation's overall performance. The returns are "leveraged." ...
1) Bonds (debt financing)
2) Issue common and preferred shares
What if a corporation does both of these? It can issue bonds (which are a source of debt) and more common shares (which is a source of equity). But what's the right mix between the two?
The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments
Leverage clientele ...
Leverage
The use of debt financing.
Rebalancing
Realigning the proportions of assets in a portfolio as needed.
Leverage Use of debt financing.
Leveraged Buy Outs This is the acquisition of a company by its management personnel. It is also known as management buyout.
Bankruptcy cost view The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt financing.
debt financing Debt financing is the process where a firm sells bonds, bills, notes or other... debt holder The holder of a promise to repay. In addition to interest the amount owed,...
Agency cost view The argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing.
The use of debt financing. Leverage clientele A group of shareholders who, because of their personal leverage, seek to invest in corporations that maintain a compatible degree of corporate leverage.
There are many types of debt financing available to small businesses-including private placement of bonds, convertible debentures, industrial development bonds, and leveraged buyouts-but by far the most common type of debt financing is a regular loan.
Leverage The use of fixed-rate debt financing to try to boost an investment's rate of return. Leveraged buyout (LBO) A strategy used to take a public corporation private financed through the use of debt funds (bank loans and bonds).
CERTIFICATE OF PARTICIPATION (COP) - A debt financing program administered by the Office of the State Treasurer.
This will give you the value of a levered firm, including the tax benefits of debt financing. Alternatively, you can discount the firm's FCFs by its unlevered cost of capital and add separately the present value of the tax benefits.
government's tax revenues rarely cover expenditures, it relies on debt financing for the balance. Moreover, on the occasions when the government does not have a budget deficit, it still sells new debt to refinance the old debt as it matures.
It is a blend of traditional debt financing and equity financing, reaping some benefits of both. Like equity financing, mezzanine financing is an unsecured debt, requiring no collateral to be put up unlike traditional bank loans.
In Chapter 10 of 20 software entrepreneur Dan Street shares why he chose to raise convertible debt financing over equity. He shares the pros and cons of each. Convertible debt benefits include structure flexibility and faster time to close.
A British term that describes a revolving credit arrangement in which the borrower periodically renews the debt financing rather than having the debt reach maturity.
2. The gradual infusion of capital into a new or recapitalized enterprise.
Leverage
The use of debt financing.
Long-term capital gain or loss
A gain or loss on the sale or exchange of a security (including mutual fund shares) that has been held for more than one year.
See also: Asset Valuation, Debt Financing, Equity Financing, Post-Money Valuation, Project Finance, Valuation
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Post-Money Valuation
Financial browser?
Definition: [crh] The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments.
It is a structural ratio that gauges the level of debt financing, and is worked out by dividing total debt, short-term and long-term, by NET WORTH. The denominator would comprise total equity of common stockholders and PREFERENCE capital.
Some industries, like the utilities, are inherently dependent on debt financing but may, nevertheless, be very healthy.
A legal term indicating the right or claim of a creditor against the property of a debtor in connection with secured debt financing. The creditor is entitled to hold such property until the debt is paid or some other obligation is fulfilled.
The formula is NOPAT = operating income x (1 - Tax Rate) NOPAT is a profitability measure that omits the cost of debt financing (i.e. it omits interest payments, along with their associated tax break).
A security interest in one or more assets that is granted to lenders in connection with secured debt financing.
LIFFE
See: London International Financial Futures Exchange ...
The debt financing part of the reports (Annual Report and Form 10-K Report) should be reviewed, and debt obligations showing conversions from foreign currencies should be noted in the work papers.
A leading underwriter of income trust IPO's including REITs
A leading underwriter of real estate debt financings
A leading real estate project and corporate lender
A leading real estate merchant bank ...
The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt financing.
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Personal Finance Glossary ...
Short term financing arranged to bridge a temporary cash shortage between the need for a expenditure (eg. to finance the purchase of a company, a share repurchase or the maturity of a debt financing) and the receipt of proceeds (eg.
Usually refers to the area within an investment bank that deals with high grade fixed income. This group will not just trade bonds on the secondard market but will be actively involved in the debt financing of new projects.
through bids submitted by various brokerage firms.Agency cost viewThe argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing.
retained earnings and new stock issues, which normally has a higher cost that debt financing; ...
Of course, in return for the stock, the company receives cash, which it uses to expand its business in a process called "equity financing". Equity financing mixed with the sale of bonds (or any other debt financing) is called the company's capital ...
Off balance sheet financing Debt financing that is not shown on the face of the balance sheet.... Offer price The lowest price at which a seller is willing to sell a particular security.
Monetize the debt Financing the national debt by printing new money, which causes inflation due to a larger money supply. Money Currency and coin that are guaranteed as legal tender by the government, a regulatory agency or bank.
 See also: Expense, Banks, Cost of capital, Net present value, Values
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