The initial equity structure after June 2009 bankruptcy left the United Auto Workers medical fund with two-thirds of the equity, Fiat with 20%, the U.S. government just shy of 10%, and the Canadian government with 2.5%.
Reshaping the equity market structure is about creating shareholder value.
In terms of capital structure, equity REITs with lower leverage that are less dependent on capital markets for growth or refinancing of capital should be relatively better-positioned to expand balance sheets and weather economic and financial volatility.
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Effectively the VIE structure means that equity holders have a somewhat indirect financial interest in the revenue and earnings stream and do not actually have a claim on the assets of the company in question.
Today, with interest rates at multi decade lows, higher equity exposure may be the appropriate structure.
This latest reduction will leave the capital structure with an implied equity cushion of 50%, sources said.
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We have a tax structure encouraging debt over equity, and we have a litigation atmosphere discouraging taking risk, going public and pushing the envelope.
Late last week, the Brisbane-based company was reportedly considering cutting the price of its IPO by up to 30% amid weakening equity markets and criticism over its corporate structure, but Resourcehouse denied those claims.
For instance, if the company looks to raise capital in debt or equity markets in the future, the new structure would allow investors to derive different growth and cost of capital assumptions leading to a higher combined valuation.
By November 2007, Mr. Taylor was an equity-derivatives trader on Goldman's Capital Structure Franchise Trading desk and had lost a "significant portion" of the trading profits he had accumulated earlier that year, according to criminal charging documents filed by prosecutors Wednesday.
Reportedly, Yang wants to structure a PIPE (private investment in public equity) deal that would allow the discounted sale of up to 19.9% of Yahoo!
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The terms of the agreement may be equity, debt, convertible debt, or any other securities structure that the entrepreneur and investor agree to.
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They should vary the capital structure as their businesses change and markets prefer debt or equity, or a interest rates fluctuate.
The private-equity industry won't leave America en masse and will adapt its compensation structure to keep talent.
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Getco sought to combine with Knight using its existing structure as a public company, giving Getco and its private-equity backer General Atlantic LLC, immediate access to shareholders.
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Their dividends are variable, their cash flows less certain and therefore an equity risk premium should exist which compensates stockholders for their junior position in the capital structure.
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Distressed debt investors will have to adapt to a surging equity market and a bubble in high-yield loan markets, finding themselves pushed down the capital structure in search for yield.
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