Recapitalization proposal

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Recapitalization proposal

Often used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Recapitalization Proposal

A plan for a company to change its capital structure. For example, a company may propose buying back its own shares and issuing debt to change from an equity-based capital structure to a debt-based capital structure. Very often, a company makes a recapitalization proposal when it is a target and wishes to ward off a hostile takeover.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
By contrast, mutual funds mark their securities to market daily and tend to evaluate recapitalization proposals in the light of their current carrying value.