Dividend Recapitalization,

Dividend Recapitalization Definition:

• When a company takes out a new loan to pay special interest to private investors or shareholders, it returns a profit (also called dividend repatriation). These are usually private investment companies that allow for the return of profits as an alternative to regularly declaring the company's profits.

  • Profit return occurs when a private equity firm issues new bonds to fund investors to pay special dividends that finance the initial purchase of a portfolio company.
  • Profits reduce the risk for private equity firms providing quick and immediate returns to shareholders, but increase debt on the portfolio firm's balance sheet.
  • Dividend capitalization is often done to free up money for private equity firms that can be returned to their investors without the need for an IPO, which can be risky.
  • Dividend capitalization is an unusual and unique phenomenon for companies that make a profit from fixed profits.

Literal Meanings of Dividend Recapitalization

Dividend:

Meanings of Dividend:

1. A company pays its shareholders regularly (usually quarterly) with profits (or reserves).

2. Divide a large number by another.

Sentences of Dividend

1. Tax exemption on pension fund profits has been abolished.

2. Dividend must have more than one symbol of the calendar.

Synonyms of Dividend

earnings, takings, profit, emolument, interest, dividend, reward, income, yield, advantage, winnings, proceeds, benefit, receipts, return, percentage

Dividend Recapitalization,

How Do You Define Dividend Recapitalization?

1. Dividend recapitalization (also called dividend recapitalization) occurs when a company takes out a new loan to pay a special interest to private investors or shareholders. These are usually companies run by private investment firms that allow dividend recapitalization as an alternative to reporting the firm's regular profits based on earnings.

   • Dividend recapitalization occurs when a private equity firm issues new bonds to raise funds to pay special interest to investors, which helps in the initial purchase of the firm's portfolio.
   • Profits reduce the risk for private equity companies, provide quick and immediate returns to shareholders, but increase debt on the company's balance sheet.
   • Dividend recapitalization is often done to free up money for private equity firms that can be returned to their investors without the need for an IPO, which can be risky.
   • Dividend recapitalization is a rare and isolated phenomenon for companies that make a profit from regular earnings.

Literal Meanings of Dividend Recapitalization

Dividend:

Meanings of Dividend:

1. Amount that the company pays to its shareholders from regular (usually annual) profits (or reserves).

2. Divide one number by another.

Recapitalization:

Sentences of Recapitalization

1. "We're looking at different alternatives, from reassembling to selling everything," he said.

2. Private underwriters will identify and force recapitalization of troubled institutions due to their weakness.

3. The recovery is proceeding as planned, the current account surplus is healthy, capital flows are strong, the company is restructuring and the bank's recapitalization is almost complete.

4. Bankruptcy is financed by the sale of assets from insolvent companies, but the process is just beginning.

Dividend Recapitalization,

Dividend Recapitalization Definition:

• James Chen, CMT, is an experienced trader, investment advisor and global market strategist. He is the author of John Wiley & Sons' books on trade and technology and has been a visiting researcher at CNBC, Bloomberg TV, Forbes and Reuters, among other financial companies.

  • Dividend reinvestment occurs when a private equity firm issues new bonds to raise funds to pay special dividends to investors who are assisted in the initial purchase of the firm's portfolio.
  • Profits reduce the risk for private equity firms, provide quick and immediate returns to shareholders, but increase debt on the company's balance sheet.
  • Dividend recapitalization is often done to free up money for private equity firms that can be returned to their investors without an IPO, which can be risky.
  • Dividend recapitalization is a rare occurrence and is different from companies that receive regular dividends from profits.

Literal Meanings of Dividend Recapitalization

Dividend:

Meanings of Dividend:

1. The amount of money that a company pays to its shareholders regularly (usually annually) from profits (or reserves).

Recapitalization:

Sentences of Recapitalization

1. "We are looking for different alternatives, from recapitalization to selling everything," he said.

2. Private underwriters will do this by pointing to the reinvestment of troubled institutions as they weaken.

3. Recovery continues as planned, current account surplus is healthy, capital flows are strong, corporate restructuring and bank recapitalization is almost complete.

4. The bank's refinancing is financed by the sale of the assets of bankrupt companies, but the process has only just begun.