recapitalisation

English - English

Definition of recapitalisation in English English dictionary

{i} act of refinancing, act of changing the financial structure (also recapitalization)

Related Terms

recapitalization

A restructuring of a company's mixture of equity and debt

recapitalization

A restructuring of a companys mixture of equity and debt

recapitalization

Companies change the structure of its debt and equity because they have too much debt and too little equity or because interest rates have dropped A recapitalization is akin to a mortgage refinancing for an individual Typically, when a company uses an IPO to recapitalize, it uses the proceeds to pay off some of its debt and replaces the remaining debt with new debt obtained on more favorable terms

recapitalization

Financing technique used by companies to defend against hostile takeovers The company borrows against undervalued assets In most cases the company borrows the money and pays shareholders a large cash dividend and exchanges the old stock with the "new" company's stock The "new" leveraged company can provide a high return on equity for shareholders if it does not choke on the high debt burden

recapitalization

The reorganization of a company’s capital structure A Company may seek to save on taxes by replacing preferred stock with bonds in order to gain interest deductibility Recapitalization can be an alternative exit strategy for venture capitalists and leveraged buyout sponsors

recapitalization

The reorganization of a company's capital structure A company may seek to save on taxes by replacing preferred stock with bonds in order to gain interest deductibility Recapitalization can be an alternative exit strategy for venture capitalists and leveraged buyout sponsors (See Exit Strategy and Leveraged Buyout)

recapitalization

The reorganization of a company’s capital structure It can be an alternative exit strategy for venture capitalists

recapitalization

~ A recapitalization, or "recap," often occurs when a company wishes to remove a current or original investor A recap changes a company's capital structure, retiring a previous debt or equity instrument and replacing it with a new instrument A recapitalization normally places a business in a more favorable financial position that is attractive to both buyers and sellers

recapitalization

Changing the capital structure of a company

recapitalization

{i} act of refinancing, act of changing the financial structure (also recapitalisation)

recapitalization

When a company changes its capital structure to reduce taxes by exchanging preferred stock for bonds or to avoid or emerge from a bankruptcy Often, new debt (e g , reorganization bonds) is issued to replace existing debt

recapitalization

The reorganization of a company's capital structure by the infusion of new cash and/or the replacement of current shareholders by new ones Recapitalization can be an alternative exit strategy for venture capitalists

recapitalization

A substantial restructuring of the stock and/or bonds of a corporation by amending the articles of incorporation or by merger with a parent or subsidiary