haʊˈɛvɚ, sˈɛkənd lˈiːən dˈɛt kæn ˈɔfən ɹᵻdˈuːs ðɪ ˌoʊvɚɹˈɔːl kˈɔst ʌv kˈæpɪɾəl ɪn ɐ lˈɛvɚɹɪdʒd bˈaɪaʊt tɹænsˈækʃən, ɹᵻplˈeɪsɪŋ ˈʌðɚ mˈoːɹ ɛkspˈɛnsɪv fˈɔːɹmz ʌv faɪnˈænsɪŋ ˈiː.dʒˈiː., sˈiːnjɚɹ ʌnsᵻkjˈʊɹd dˈɛt.
However, second lien debt can often reduce the overall cost of capital in a leveraged buyout transaction, replacing other more expensive forms of financing (e.g., senior unsecured debt).