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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 ...
Continue reading → The post Understanding Dividend Recapitalization appeared first on SmartAsset Blog. Publicly traded companies sometimes issue quarterly dividends to reward investors. In ...
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.
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.
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 dividend stock is a publicly traded company that regularly shares profits with shareholders through dividends. These companies tend to be both consistently profitable and committed to paying ...
a recapitalization — cash is distributed to the shareholders (in this case the financial sponsor) and its private-equity funds either from cash flow generated by the company or through raising debt or other securities to fund the distribution. a merger or acquisition — the company is sold for either cash or shares in another company;
The dividend is an incentive to hold the stock through this period. A 2.1% yield is higher than the S&P 500 average of 1.2%. It's also worth mentioning that even though Nike's business hasn't been ...