dividend recapitalization
C2CEFR level
97/100Rarity: very rare
TechnicalRegister
Law noun
A refinancing that raises fresh debt to fund a large one-off dividend to shareholders.
The sponsor did a dividend recap, pulling its whole cheque back out while leaving the portfolio company groaning under new leverage.
Business noun
Raising fresh debt on a company specifically to fund a large dividend back to its owners.
Two years in, we did a dividend recapitalization and pulled out most of our original equity while still owning the business.
Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.
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