debt-equity swap


Also found in: Financial.

debt-equity swap

A method used by companies to reduce debt by swapping existing bonds (a form of debt) for newly issued stock (a form of equity).
Dictionary of Unfamiliar Words by Diagram Group Copyright © 2008 by Diagram Visual Information Limited
References in periodicals archive ?
Company president and CEO Ricardo Sarmiento said in a briefing yesterday that the company had submitted an application for a second debt-equity swap to the Securities and Exchange Commission.
Bankers have also held off on the debt-equity swap with RCom`s stock falling to less than half of the agreed swap price.
* Debt-equity swap according to Roberts and Remolona, is "a deal converting a developing country's debt into foreign equity in a domestic firm".
Before infusing fresh taxpayer money in DSME, the government requested corporate bondholders and commercial paper holders to agree on a 50 percent debt-equity swap and 50 percent debt rescheduling on their receivables worth 1.5 trillion won.
It is principally engaged in asset management, investment and financing businesses, non-performing assets acquisition and disposal, cross-border financial services and industrial investment, asset management entrustment business, investment in property and related sectors, debt-equity swap, mergers and acquisitions and asset restructuring businesses.
Although banks always had the option o convert debt to equity, the SDR allows lenders to bypass he pricing norms which requires the debt-equity swap to take place at a six month average price.
The reorganization plan, largely a debt-equity swap, would give bondholders $375 million in secured debt, 97.5% of stock in the reorganized company and another 2.5% stake to trade creditors and unsecured bondholders.
The report states that high profitability, capital injections by some banks, and debt-equity swap of one bank have further improved the solvency of banking sector.
When companies go bankrupt, a debt-equity swap is a fair and efficient solution.
The company has finalised the terms of financial contracts for a restructuring plan valued at more than USD3bn, which will include a USD1.4bn debt-equity swap with...
CVC is seeking refinancing options, with some hedge funds which bought at least half of the groupa[euro](tm)s AUD2.7bn (USD2.9bn/EUR2.2bn) senior debt maturing in February 2013, targeting debt-equity swap deals, the report said.
Portugal's Banco Espirito Santo SA (BES.LB) is planning to issue up to EUR3.5bn in government-backed guaranteed bonds, and raise up to EUR790.9m in a debt-equity swap to improve capital levels.