What is back leverage?

Back Leverage means the (i) incurrence of indebtedness by the Purchaser to finance a portion of its purchase of the Notes and (ii) granting of liens by the Purchaser to secure payment of such indebtedness, including on the Notes and Ordinary Shares of the Company held by the Purchaser.

How do businesses use leverage?

Businesses use leverage to launch new projects, finance the purchase of inventory and expand their operations. For many businesses, borrowing money can be more advantageous than using equity or selling assets to finance transactions.

What is a back-leverage financing structure?

In a typical back-leverage financing structure, back-levered lenders enter into a credit agreement with, and make loans to, a holding company established by a sponsor. This holding company is set up by the sponsor in order to hold the sponsor’s equity interests in the tax equity partnership.

What does 'highly leveraged' mean?

When one refers to a company, property, or investment as "highly leveraged," it means that the item has more debt than equity. Leverage might have played a factor in the 2008 global financial crisis.