Dividend recapitalization is the practice among private equity funds of having a portfolio company take on debt which is used to pay a large dividend to the company’s shareholders. If the private equity fund owns most of the shares, it gets most of the dividend, which can sometimes be greater than the initial investment. In the first quarter of 2007, issuers have financed a record $26.9 billion, a number expected to grow to $108 billion, which is almost twice the amount financed in 2006. Purchase this webinar archive to learn about the risks involved with these types of transactions, and how to profit from the surge in this market.

Dividend recapitalization is increasingly seen as an important means to liquidity and a viable alternative to an initial public offering or sale. This session covers the process to be followed by the distributing company in order to mitigate the risk that a disappointed creditor will make, claiming that the dividend was not lawful. This session also covers the structure of the loans, and the results of a Pepper Hamilton survey that relates to the estimation and frequency of future deals.

The loan volume for dividend recapitalizations has seen tremendous growth. This session covers dividend recapitalizations from the perspective of private equity, and the various considerations that need to be evaluated by private equity firms, portfolio companies and the board of directors.

Click here to purchase archive access, or call (516) 876-8006.