Leveraged Recapitalization

What Does Leveraged Recapitalization Mean?
A strategy where a company takes on significant additional debt with the purpose of either paying a large dividend or repurchasing shares. The result is a far more financially leveraged company.

Investopedia explains Leveraged Recapitalization
This is often used in risk arbitrage. It is also a form of shark repellent.

Related Terms

Leverage
Risk Arbitrage
Shark Repellent
Stub
More Related Terms

Related Links

Trading the Odds with Arbitrage - Profiting from arbitrage is not only for market makers--retail traders can find opportunity in risk arbitrage.
Will Corporate Debt Drag Your Stock Down? - Borrowed funds can mean a leg up for companies, or the boot for investors. Find out how to tell the difference.
The Wacky World of M&As - Do you want your company to sandbag or greenmail? Welcome to the dramatic world of mergers and acquisitions.

Rate this Term: Your Rating: Overall Rating: Vote Now!