Debt/Equity Swap

A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt.

There are several reasons why a company may want to swap debt for equity. For example, a firm may be in financial trouble and a debt/equity swap could help avoid bankruptcy, or the company may want to change capital structure to take advantage of current stock valuation.

Covenants in the bond indenture may prevent a swap from happening without consent.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Debt equity swap —   [ det ekwətɪ swɔp, englisch], Umwandlung von Not leidenden Bankkrediten (v. a. Fremdwährungsforderungen privater Banken an Regierungen und Unternehmen hoch verschuldeter Länder) in Beteiligungskapital. Ein multinationales Unternehmen, das… …   Universal-Lexikon

  • debt-equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary * * * debt equity swap debt equity swap ➔ swap2 * * * debt equity swap UK US (also debt/equity swap …   Financial and business terms

  • Debt Equity Swap — Der Begriff Debt Equity Swap oder Gläubigerbeteiligung bezeichnet eine Transaktion, bei der eine Forderung eines Gläubigers gegenüber einem Schuldnerunternehmen zugunsten einer entsprechenden Beteiligung an diesem erlischt. Der Schulder verfügt… …   Deutsch Wikipedia

  • Debt Equity Swap — ⇡ Debt Conversion Programm …   Lexikon der Economics

  • debt/equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary …   Financial and business terms

  • Equity swap — Produits dérivés financiers Produits fermes Forwards (Contrat de gré à gré) Futures (Contrat à terme) Swaps (Échange financier) Produits optionnels Options et Warrants Credit default swap (couvertures de défaillance) …   Wikipédia en Français

  • debt for equity swap — A capital reorganisation of a company in which a creditor converts indebtedness owed to it by a company into one or more classes of that company s share capital (which may not be equity share capital in the strict sense). Practical Law Dictionary …   Law dictionary

  • debt-for-equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary …   Financial and business terms

  • Debt for Equity Swap —    When a debtor country, usually with economic problems or a deteriorating credit rating, uses its local currency to buy back its foreign debt at a discount in line with market conditions. Creditors then use that local currency to invest in… …   Financial and business terms

  • debt-for-equity swap — A transaction in which debt is swapped for equity. It often accompanies the reorganization of companies in financial distress …   Big dictionary of business and management

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