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leveraged recapitalization

   Also found in: Wikipedia 0.01 sec.
Leveraged recapitalization
Often used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub.
leveraged recapitalization
A corporate reorganization in which borrowed funds are used to pay a large one-time dividend to shareholders. The result is a company with greater financial risk because of increased debt and reduced equity. In some instances the dividend is paid in shares of stock rather than cash to inside shareholders who increase their proportional ownership and control.


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A leveraged recapitalization utilizes both debt and equity capital to create a new capital structure for a company, providing liquidity for the owner and growth capital for the business, if necessary.
The leveraged recapitalization: a tool for liquidity by Kinsman, Brian / San Diego Business Journal
The cost of a leveraged recapitalization tends to ne lower than taking the company private in an
You can be your own white knight by Hackett, Lee P. / Financial Executive
Leveraged recapitalization is when a company takes a loan to replace some of the owner s equity.
Transitioning Ownership by ROBERTS, JOHN / Los Angeles Business Journal
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