A change in a company's capital structure, such as an exchange of bonds for stock. Recapitalization is often undertaken with the aim of making the company's capital structure more stable, and sometimes to boost the company's stock price (for example, by issuing bonds and buying stock). Companies that do not want to become hostile takeover targets might undergo a recapitalization by taking on a very large amount of debt, and issuing substantial dividends to their shareholders (this makes the stock riskier, but the high dividends may still make them attractive to shareholders). Also, bankrupt companies often undertake a recapitalization as a part of their reorganization process.
Related information about recapitalization:
- Recapitalization - Wikipedia, the free encyclopedia
Recapitalization is a sort of a corporate reorganization involving substantial change in a company's capital structure. Recapitalization may be motivated by a ...
- Leveraged recapitalization - Wikipedia, the free encyclopedia
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to ...
- Recapitalization Definition | Investopedia
Restructuring a company's debt and equity mixture, most often with the aim of making a company's capital structure more stable. Essentially, the process ...
- Recapitalization - Financial Dictionary - The Free Dictionary
The act of changing a company's capital structure. For example, a highly leveraged company (one that is largely financed with debt) may repay most of its debt ...
- What is recapitalization? definition and meaning
Definition of recapitalization: A change in a company's capital structure, such as an exchange of bonds for stock. Recapitalization is often undertaken with the ...
- Recapitalization - Merriam-Webster Online
Definition of recapitalization from the Merriam-Webster Online Dictionary with audio pronunciations, thesaurus, Word of the Day, and word games.
- Recapitalization: Definition from Answers.com
Recapitalization Any major changes in a corporation's paid in capital, resulting from issuance of new shares of stock, Reorganization in bankruptcy, or.
- Leveraged recapitalization
Leveraged Recapitalizations and Exchange Offers. Prof. Ian Giddy, New York University. Leveraged Recapitalization is a strategy where a company takes on ...