recapitalization
Changing capital structure
Recapitalization is restructuring a company's mix of debt and equity—the capital that finances its operations.
A company might recapitalize by issuing new stock to pay down debt, or by taking on debt to buy back shares.
The private equity firm forced a recapitalization to extract dividends.
Recapitalizations often signal financial distress or a strategic shift in ownership structure.
Units of company ownership
- stockGoods kept for sale
- dilutionReduction in concentration
- issuanceOfficial release or distribution
- ownershipLegal right of possession
shareholders · dividends · preferred · common · voting rights · stake · private equity · stock split
Replacing a loan
- restructuringRearranging an existing framework
- bondsTies that unite
- creditorsThose owed payment
- principalChief school administrator
interest · repayment · maturity · subordination · seniority · tranches · covenants · leverage
Shift in opposite direction
- reorganizationChanging how something's arranged
- mergerCorporate combination
- acquisitionAct of obtaining something
- spin-offDerivative from a parent
divestiture · consolidation · balance sheet · deleveraging · financial engineering · going concern · solvency · management buyout
shares
Units of company ownership
ownership · shareholders · dividends · preferred · common · voting rights · stake · private equity · stock split · share buyback
refinancing
Replacing a loan
- restructuringRearranging an existing framework
- bondsTies that unite
- creditorsThose owed payment
principal · interest · repayment · maturity · subordination · seniority · tranches · covenants · leverage · default
turnaround
Shift in opposite direction
- reorganizationChanging how something's arranged
- mergerCorporate combination
- acquisitionAct of obtaining something
spin-off · divestiture · consolidation · balance sheet · deleveraging · financial engineering · going concern · solvency · management buyout · leveraged buyout
- corporate financeinvestment, NPV, debt financing, shareholder, bankruptcy
- Bailoutsbailout, bank bailout, bank bailouts, rescue package, rescue fund
- financial eventsmerger, acquisition, IPO, bankruptcy, takeover
- financial reliefdebt relief, bailout, loan forgiveness, debt forgiveness, stimulus
- private equityleveraged buyout, leveraged buyouts, LBO, buyouts, general partner
- Bank Failuresbank failure, bank closure, bank run, insolvency, receivership
recapitalizationliquidation
Selling assets for cash
dissolution · winding up · going out of business · insolvency
recapitalizationdefault
Preset standard option
insolvency · bankruptcy · foreclosure · receivership · asset seizure
capital, capitulate, capitalization, decapitate, recapitalize