Dividend Recaps: Buying Without a Net

O'Leary, Christopher
August 2005
Investment Dealers' Digest;8/1/2005, Vol. 71 Issue 30, p12
Trade Publication
Focuses on the dividend deal boom in the leveraged finance market in the U.S. Surge in the volume of high-yield corporate debt dividend recaps; Lack of deal covenants specifically outlawing an issuer from subsequently doing a dividend recapitalization, which are the only true protection available to bondholders; Effort of a group of investors to demand anti-dividend deal covenants; Signs that the overall market is growing tired of dividend recapitalizations.


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