The definition of a highly leveraged transaction is any transaction that involves a buyout, acquisition or recapitalization.

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A highly leveraged transaction typically refers to a transaction where a significant amount of debt is used to finance the purchase, buyout, acquisition, or recapitalization, but the definition is broader and not limited to these activities. It also involves situations where the post-transaction debt level significantly exceeds the pre-transaction level or industry norms, potentially increasing financial risk.

The Definition of a Highly Leveraged Transaction Is Any Transaction