Degearing

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Degearing

The process of a company repaying debt and issuing equity in order to alter its capital structure. A capital structure is how a company finances itself. Some (though not all) analysts believe that minimizing debt and maximizing equity can reduce the company's risk because, most of the time, paying coupons on debt is required while paying dividends on equity is not. Degearing is therefore a strategy to decrease risk while also maintaining the same level of financing. See also: Deleverage.
References in periodicals archive ?
Women, men, and children, laypeople and vowed religious," Berne DeGear recalled.
I think many of us who are Catholic and were at one of those marches experienced that feeling as the presence of the Holy Spirit moving among us all," Berne DeGear said.
Whereas selling even a small stake was once frowned on, we at Gresham Trust recognise that owners often want to degear.