A transaction in which a corporation exchanges existing bonds (debt) for newly issued stock (equity). For example, XYZ company can in essence cancel a portion of their debt and transfer the equivalent balance to equity. A debt-equity swap can help a company that is in financial trouble by canceling some of its outstanding debt. Other companies may take advantage of this process if the current value of their stock is high, allowing them to trade more debt for less stock.
Related information about debt-equity swap:
- Debt/Equity Swap Definition | Investopedia
A transaction in which the obligations (debts) of a company or individual are exchanged for something of value (equity). In the case of a publicly-traded company ...
- What is a debt/equity swap?
Aug 11, 2006 ... Occasionally, a company will need to undergo some financial restructuring to better position itself for long term success. One possible way to ...
- What is debt-equity swap? definition and meaning
Definition of debt-equity swap: A transaction in which a corporation exchanges ... A debt-equity swap can help a company that is in financial trouble by canceling ...
- Debt-for-equity swaps - Globe Law and Business
1. Introduction. The principal element of any debt-for-equity swap is a restructuring of the balance sheet of a corporate debtor so that the relevant participating ...
- Debt/Equity Swap - Financial Dictionary - The Free Dictionary
A situation in which a debtor (which is a company) replaces the debt held by one or more creditors with a percentage of ownership in the company. A debt-equity ...
- Debt-to-Equity Swap Definition
This is the definition of the creation of a hybrid financial transaction known as debt-to-equity swap.
- debt-equity swap noun - definition in Business English Dictionary ...
debt-equity swap noun - definition, audio pronunciation and more for debt-equity swap noun: an agreement in which a company offers shares to its creditors ...
- What is Debt-Equity Swap?
A debt-equity swap is a way to restructure some of the finances of a corporation so that it can better position itself in terms of its financial standing. In the case of a ...