Dividend Recapitalization
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Definition of 'Dividend Recapitalization'
When a company incurs a new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to selling its equity stake in the company.
Also known as a "dividend recap".
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Investopedia explains 'Dividend Recapitalization'
The dividend recap has seen explosive growth, primarily as an avenue for private investment firms to recoup some or all of the money they used to purchase their stake in a business. It is generally not looked upon favorably by creditors or common shareholders because it reduces the credit quality of the company while only benefiting a select few.
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Search results for 'Dividend Recapitalization'
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http://stocks.investopedia.com/stock-analysis/2010/Why-Buffett-Is-Right-To-Avoid-Buying-Private-Equity-Owned-Businesses-BX-OWW-CE-ANR1115.aspx
... It invested approximately $68 million in the venture for a 42% ownership stake,
and thanks to the much-used dividend recapitalization, recovered its initial ...
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http://www.investopedia.com/articles/stocks/11/interpreting-investor-news.asp
... Consequently, a recapitalization is only good news for investors willing to take
the special dividend and run, or in those cases where it is prelude to a deal ...
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http://stocks.investopedia.com/stock-analysis/2010/The-Best-Capital-Allocator-In-Consumer-Goods-SMG-CLX-PG-PM-JNJ0115.aspx
... paid a special dividend of $8 a share ($508 million) in February, 2007, in addition
to its $246.8 million share repurchase, as part of a recapitalization move. ...
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http://www.investopedia.com/articles/stocks/09/parents-and-spinoffs.asp
... fit in with mandates (either it's too small, has no dividend or there ... overleveraged
because the parent may be doing a leveraged recapitalization, whereby the ...
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http://stocks.investopedia.com/stock-analysis/2009/Texas-Pacific-Group-Made-Money-On-J.-Crew-Did-You-JCG-GPS-BKC-GPK-FIS0508.aspx
... Crew dates back to 1997, when it carried out a $559.7 recapitalization, which included ...
by February 2006, when Burger King paid them a special dividend of $367 ...
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http://financialedge.investopedia.com/financial-edge/0212/Dodd-Franks-Consequences.aspx
... a good and bad bank, with the former to be run by the Federal Deposit Insurance
Corporation (FDIC), selling the good bank to another bank or recapitalization. ...
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http://www.investopedia.com/articles/trading/10/warrants.asp
... Less commonly, warrants are issued as part of the recapitalization plan of a bankrupt ...
Dividend Warrant-holders are not entitled to receive dividends, and the ...
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