Degearing

(redirected from Degear)
Also found in: Dictionary.

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 ?
"We thought, why not march to Mass?" Berne DeGear said.
"Women, men, and children, laypeople and vowed religious," Berne DeGear recalled.
Dan Degear, Town Supervisor at dan@deruyternygov.us or to Mr.Walter Cook, Highway Superintendent at walt@deruyternygov.us.
Whereas selling even a small stake was once frowned on, we at Gresham Trust recognise that owners often want to degear.
'We have generated a lot of cash and are almost degeared. We would be able to raise pounds 200 million of debt without difficulty,' said Mr Arnott.