Leveraged/Acquisition Finance is the acquiring of another company by means of a significant amount of borrowed money to meet the cost of acquisition.
It is a combination of equity brought by the investor and debt provided by the bank. The ratio between these two instruments depends on the risk profile of a target and commitment from an investor.
The cash flow of a target is used to secure and repay the borrowed money. The assets of the company being acquired are used as collateral for the loans.
Typical for the acquisition finance is a long-term facility with some form of modest repayment schedule.