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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 ...
Recapitalization is a type of corporate reorganization involving substantial change in a company's capital structure. Recapitalization may be motivated by a number of reasons. Usually, the large part of equity is replaced with debt or vice versa. In more complicated transactions, mezzanine financing and other hybrid securities are involved.
Such recapitalizations are executed via issuing bonds to raise money and using the proceeds to buy the company's stock or to pay dividends. Such a maneuver is called a leveraged buyout when initiated by an outside party, or a leveraged recapitalization when initiated by the company itself for internal reasons. These types of recapitalization ...
Continue reading → The post Understanding Dividend Recapitalization appeared first on SmartAsset Blog. Publicly traded companies sometimes issue quarterly dividends to reward investors. In ...
Rather, they were plotting a "dividend recap." After taking BJ's private, LG and CVC ordered the company to pay them a $643 million dividend -- equal to the entire cash outlay they'd made in the ...
A Reverse Morris Trust in United States law is a transaction that combines a divisive reorganization with an acquisitive reorganization (statutory merger) to allow a tax-free transfer (in the guise of a merger) of a subsidiary. [1]
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Section 199A dividends are distributions from the profits of domestic real estate investment trusts (REITs) that qualify for a special 20% tax deduction. ... Pros and Cons Explained. Mark Henricks ...