recapitalization

(redirected from recapitalized)
Also found in: Dictionary.

Recapitalization

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 and issue stock so that it is financed with equity. On the other hand, a company may make a self-tender offer and buy back most of its stock while issuing bonds so that it becomes debt-financed. Some companies may believe that recapitalization can be advantageous, but the capital structure irrelevance principle states that a company's capital structure has no bearing on its profitability. Recapitalization is also called an e-type reorganization.

recapitalization

A change a company makes in the long-term financing mix it uses. For example, a firm may borrow long-term funds (that is, it may sell bonds) in order to acquire the money needed to repurchase a block of its outstanding stock. Because recapitalization will often affect the level and the volatility of earnings per share, it is of interest to stockholders. Recapitalization often occurs when a firm attempts to reorganize while in bankruptcy proceedings.
References in periodicals archive ?
Here, equity in a recapitalized iHeart is also a sticking point, with iHeart offering 0.
To meet HEMTT A4 configuration requirements, recapitalized vehicles will receive improved suspension systems, a fully air-conditioned and armor-ready cab, and a more powerful drive train.
The corporation is recapitalized to create a new class of nonvoting common stock with the same distribution and liquidation rights as the outstanding voting stock.
At the macro level, the goals of the program are fairly simple: to maximize marginal return on recapped components; to increase unscheduled mean time between removal (MTBR) for selected recapitalized components by 20 percent; and to reduce average fleet life to 10 years by 2010.
Discussions about merging BIF with a recapitalized SAIF and sharing the FICO interest obligation among the members of both deposit insurance funds raise the question of retaining separate bank and thrift charters.
CIF") have recapitalized 485 Lexington Avenue, a 921,000-square-foot midtown Manhattan office property acquired by the joint venture in July 2004.
BV will own a majority of the recapitalized company and the senior management team will maintain a significant interest.
That is why Oshkosh recapitalized vehicles are assembled on the same production line as new vehicles, and complete the same extensive performance tests and inspection procedures as new vehicles.
The Mills Corporation recapitalized Meadowlands Xanadu yesterday (Tuesday) a development that had become the embattled company's greatest liability after the project's construction costs were revealed last month to have jumped from $1.
a closely held corporation, was successfully recapitalized in 1983.
The merging of a recapitalized SAIF with a sound BIF would then consolidate the FICO bond obligation of SAIF into the new insurance fund and effectively obligate past BIF members to participate on a pro rata basis.