Tag: Dividend Recapitalization

LAKE FOREST, Calif. - Do you know what a “dividend recapitalization” is? I didn't, but I do now. This issue comes up because recently I ran into news stories involving two industry companies: Apria Healthcare and Attends Healthcare, a maker of adult incontinence items. Apria, pending shareholders approval, has arranged a $500 million “dividend recap” and Attends $98 million. Here's what Investopedia, an online investing dictionary, says about dividend recaps: When a company...

Now that you know what a dividend recapitalization is, here's some additional insight on The Blackstone Group and Apria Healthcare from Bob Leonard, an analyst with the Pittsburgh-based mergers and acquisition firm, The Braff Group. What Blackstone's $500 million dividend recap from Apria means in his own words “They're basically paying themselves. I mean, they still own what they own. They haven't reduced their ownership position at all. They've just further leveraged the company to take...

Do you know what a "dividend recapitalization is?" I didn't but I do now, and if you read a little further, you will, too. It's interesting. This issue comes up because last week I ran into news stories involving two industry companies: Attends Healthcare, a maker of adult incontinence items, and Apria. Attends recently arranged a $98 million "dividend recap" and Apria, pending shareholders approval, will do a $500 million dividend recap. Here's what Investopedia, an online investing dictionary,...