Printer Friendly
The Free Dictionary
988,314,043 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Debt/Equity Swap

    0.01 sec.
Debt/Equity Swap
A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt.

Notes:
There are several reasons why a company may want to swap debt for equity. For example, a firm may be in financial trouble and a debt/equity swap could help avoid bankruptcy, or the company may want to change capital structure to take advantage of current stock valuation.

Covenants in the bond indenture may prevent a swap from happening without consent.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
Dr O'Leary joined the HSBC group in 1984 and until his retirement in 2005 was involved in a wide variety of project financing, equity and M&A transactions, including the first debt/equity swap in the mining industry which was used to finance the start-up operations at Antofagasta's Los Pelambres mine.
Moto Goldmines Limited-Changes To The Board Of Directors by Business Wire
More results
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.