Degearing
The action of a company altering its capital structure by replacing long-term debt with equity, thereby easing the burden of interest payments and also increasing management's flexibility.
Investopedia Commentary
A company is highly geared or leveraged when a large portion of its capital structure is made up of long-term debt. Degearing is a movement away from this capital structure in the effort to decrease financial risk.
Related Links
When Companies Borrow Money
Reading The Balance Sheet
See also: Business Risk, Capital Structure, Debt, Debt Ratio, Deleverage, Equity, Financial Risk, Gearing, Leverage