Recapitalisation

Recapitalisation is a deliberate restructuring of a company’s mix of debt and equity — for example adding debt to return capital to shareholders, raising new equity to reduce leverage, or replacing one form of capital with another. The underlying business stays the same; the capital stack funding it changes.

Arranged in dividend recapitalisations, debt restructurings and ownership transitions.

Refinancing replaces existing debt with new debt, usually to lower cost, extend maturity or change terms. A recapitalisation changes the overall mix of debt and equity — adding debt to return capital to shareholders, raising equity to cut leverage, or swapping one form of capital for another — while the business stays the same.

Typically to release value without selling the business, as in a dividend recapitalisation; to repair an overleveraged balance sheet by raising new equity; or to reset the capital structure during an ownership transition or restructuring. The underlying operations continue unchanged while the capital stack funding them is rebuilt.