Leveraged Recapitalization

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Dictionary Says

Definition of 'Leveraged Recapitalization'

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 Says

Investopedia explains 'Leveraged Recapitalization'

This is often used in risk arbitrage. It is also a form of shark repellent.

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