A change in a companys capital structure, such as an exchange of bonds for...
The process of altering a company's debt and equity capitalization. Companies recapitalize in order to: (i) stabilize the company's capital structure, (ii) replace equity with debt capital to make a distribution to shareholders or (iii) provide additional capital for growth.
A substantial restructuring of the stock and/or bonds of a corporation by amending the articles of incorporation or by merger with a parent or subsidiary.
a transaction that changes the capital structure of a company
In the context of IPO's, recapitalization refers to the company restructuring its debt by using the proceeds of an IPO to pay off some of its debt.
The process of changing the capital structure of a company by either increasing or decreasing the amount of corporate debt and/or equity.
Companies change the structure of their debt and equity because they have too much debt and too little equity or because interest rates have dropped. A recapitalization is akin to a mortgage refinancing for an individual. Typically, when a company uses an IPO to recapitalize, it uses the proceeds to pay off some of its debt and replaces the remaining debt with new debt obtained on more favorable terms.
The reorganization of a company's capital structure. A company may seek to save on taxes by replacing preferred stock with bonds in order to gain interest deductibility.
When a company changes its capital structure to reduce taxes by exchanging preferred stock for bonds or to avoid or emerge from a bankruptcy. Often, new debt (e.g., reorganization bonds) is issued to replace existing debt.
Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable.