One example of recapitalization is a leveraged rec

One example of recapitalization is a leveraged recapitalization, wherein the company issues bonds to raise money, and then buys back its own shares. Usually, current shareholders retain control. The reasons for this sort of recapitalization include:

Desire of current shareholders to partially exit the investment
Providing support of falling shareprice
Disciplining the company that has excessive cash
Protection from a hostile takeover
Rebalancing positions within a holding company
Help to improve the stock of the company during a time of poor economic marker[1]

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