Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Leveraged Recapitalization

Updated on 2023-08-29T11:58:36.923560Z

Leveraged Recapitalization, also known as a leveraged recap, is a plan where a company takes on significant extra debt with the objective of either share repurchasing or paying a large dividend.

In other words, it is finance transaction by a corporate wherein changes its capitalization structure by replacing most of its equity with a package of debt securities consisting of both senior bank debt as well as subordinated debt.