- Dividend recapitalization
- Leveraged recapitalization
- Preferred stock
- Private equity
- Recap
- Leonard Green & Partners
- Limited liability company
- Financial endowment
- Corporate raid
- Bain Capital
- Understanding Dividend Recapitalization, With Example - Investopedia
- Dividend Recapitalization - Definition, Risks, Example
- Dividend recapitalization - Wikipedia
- Dividend Recapitalization - What Is It, Examples, Pros, Cons
- Dividend Recapitalization: What is it and how it works?
- Understanding Dividend Recapitalization: Key Drivers and Impacts
- Using a Dividend Recapitalization as an LBO Partial Exit Strategy
- Dividend Recapitalization: What Is It and How Does It Work?
- PE sponsors tap leveraged loan market for dividend deals at
- Dividend Recapitalization Pick up in 2024 - us.sganalytics.com
Dividend recapitalization GudangMovies21 Rebahinxxi LK21
A dividend recapitalization (often referred to as a dividend recap) in finance is a type of leveraged recapitalization in which a payment is made to shareholders. As opposed to a typical dividend which is paid regularly from the company's earnings, a dividend recapitalization occurs when a company raises debt —e.g. by issuing bonds to fund the dividend.
These types of recapitalization can be minor adjustments to the capital structure of the company, or can be large changes involving a change in the power structure as well. As with other leveraged transactions, if a firm cannot make its debt payments, meet its loan covenants or rollover its debt it enters financial distress which often leads to bankruptcy. Therefore, the additional debt burden of a leveraged recapitalization makes a firm more vulnerable to unexpected business problems including recessions and financial crises.
Typically a dividend recapitalization will be pursued when the equity investors are seeking to realize value from a private company but do not want to sell their interest in the business.
Example
Between 2003 and 2007, 188 companies controlled by private equity firms issued more than $75 billion in debt that was used to pay dividends to the buyout firms.
In their relatively brief period of management of Hostess Brands, maker of Twinkie brand snack cakes and other products, Apollo Global Management and C. Dean Metropoulos and Company added leverage and took a $900 million dividend, "the third largest of 2015" in the private equity industry.
See also
Private equity
Leveraged recapitalization
References
Kata Kunci Pencarian:
Dividend recapitalization - Alchetron, the free social encyclopedia
Dividend Recapitalization: Marketplace | PDF | Dividend | Stock Trader
Dividend Recapitalization - Assignment Point
Dividend Recapitalization - Assignment Point
Dividend Recapitalization (With Example) - eFinanceManagement
Dividend Recapitalization - Finance Reference
Dividend Recapitalization (Explained: All You Need To Know)
Dividend Recapitalization in 2023 | Dividend, Equity, Debt
Understanding Dividend Recapitalization - SmartAsset
Understanding Dividend Recapitalization - SmartAsset
Understanding Dividend Recapitalization - SmartAsset
Dividend Recapitalization - What Is It, Examples, Pros, Cons
dividend recapitalization
Daftar Isi
Understanding Dividend Recapitalization, With Example - Investopedia
Mar 31, 2021 · Dividend recapitalization is when a private equity firm issues new debt so as to raise money to pay a special dividend to the investors who helped fund the initial purchase of the portfolio...
Dividend Recapitalization - Definition, Risks, Example
Dividend recapitalization (frequently referred to as dividend recap) is a type of leveraged recapitalization that involves the issuing of new debt by a private company, that is later used to pay a special dividend to shareholders (thereby, reducing the company’s equity financing in relation to debt financing). The source of the dividends ...
Dividend recapitalization - Wikipedia
A dividend recapitalization (often referred to as a dividend recap) in finance is a type of leveraged recapitalization in which a payment is made to shareholders.
Dividend Recapitalization - What Is It, Examples, Pros, Cons
Dividend recapitalization, or dividend recap, is a financial strategy in which a company takes on debt to pay a special dividend to its shareholders. Dividend recapitalization aims to increase shareholder value by leveraging the company's assets and using the proceeds to pay a …
Dividend Recapitalization: What is it and how it works?
Sep 19, 2023 · Dividend recapitalization is a way for companies to raise money by issuing new debt and using the proceeds to pay a special dividend to shareholders or private investors.
Understanding Dividend Recapitalization: Key Drivers and Impacts
Sep 17, 2024 · Explore the key drivers and impacts of dividend recapitalization, including its types and effects on financial metrics and shareholder value. Companies often seek ways to return value to their shareholders, and one method that has gained traction is dividend recapitalization.
Using a Dividend Recapitalization as an LBO Partial Exit Strategy
Jun 25, 2024 · Dividend recapitalization (dividend recap) is a financial strategy where a company incurs new debt to pay a special dividend to its shareholders. This tactic can be particularly advantageous for business owners looking to extract value from their companies without having to …
Dividend Recapitalization: What Is It and How Does It Work?
Jun 7, 2022 · A dividend recapitalization is a financing tool that companies can use to raise capital to pay dividends to shareholders. In a dividend recapitalization, a company will take out a loan or issue bonds and use the proceeds to pay dividends to shareholders.
PE sponsors tap leveraged loan market for dividend deals at
20 hours ago · There are currently two dividend recapitalization deals in market, a $900 million, seven-year first-lien term loan for Energy Capital Partners–backed Next Wave that is being offered at S+350 and an OID of 99.5 and a $370 million fungible add-on to L Catterton–backed AmaWaterways’ term loan B due May 2031 (S+300, 0% floor) that is being ...
Dividend Recapitalization Pick up in 2024 - us.sganalytics.com
Oct 11, 2024 · Dividend recapitalization (recap) has seen a sharp rise in 2024, which is unusual in a high-interest rate environment. Private equity (PE) firms turn to dividend recap to generate returns, though it carries potential risk for portfolio companies due to …