For Recapitalization we have terms and definitions in 3 topics. The topics are Accounting, Accounting Terms and IPO.

Recapitalization (Accounting)

An internal reorganization of a corporation including a rearrangement of the capital structure by changing the kind of stock or the number of shares outstanding or issuing stock instead of bonds. It is distinguished from most other types of reorganization because it involves only one corporation and is usually accomplished by the surrender by shareholders of their securities for other stock or securities of a different type.

Recapitalization (Accounting Terms)

An internal reorganization of a corporation including a rearrangement of the capital structure by changing the kind of stock or the number of shares outstanding or issuing stock instead of bonds. It is distinguished from most other types of reorganization because it involves only one corporation and is usually accomplished by the surrender by shareholders of their securities for other stock or securities of a different type.

Recapitalization (IPO)

Companies change the structure of its debt and equity because they have too much debt and too little equity or because interest rates have dropped. A recapitalization is akin to a mortgage refinancing for an individual. Typically, when a company uses an IPO to recapitalize, it uses the proceeds to pay off some of its debt and replaces the remaining debt with new debt obtained on more favorable terms.

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