A debt-funded special dividend mid-hold to sponsor equity, financed by issuing new debt at the portfolio company level. Mechanics: (1) sponsor engages debt capital markets to refinance existing debt; (2) new debt raised exceeds existing debt; (3) existing debt repaid; (4) residual (new debt − existing debt − transaction fees) distributed to equity; (5) company is left with higher leverage but typically within credit profile. Typically requires positive consent under the credit agreement (restricted-payments basket or amendment). Worked outcome: a 125M mid-hold dividend on 175M sponsor equity returns 71% of original investment at Year 3 — de-risking, not return-enhancing.