A loan that finances a merger or acquisition that results in a high-leverage ratio for the borrower is called a

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A loan that finances a merger or acquisition and results in a high-leverage ratio for the borrower is called a high-leverage transaction (HLT) loan. This type of loan is used when a borrower wants to acquire another company but does not have enough capital to do so without taking on a significant amount of debt. HLT loans are considered risky because the borrower's level of debt is high relative to their equity, which increases the likelihood of default.

A Loan That Finances a Merger or Acquisition That Results