Finance:Bond Tender Offer
From HandWiki
A Bond Tender Offer (BTO), also called a Debt Tender Offer (DTO), is a corporate finance term denoting the process of a firm retiring its debt by making an offer to its bondholders to repurchase a specific number of bonds at a specified price and specified time. Firms use these offers to refinance or restructure their current capital structure.[1][2]
On the open market, many debt securities trade below their face value, thus making repurchase of debt attractive to a firm. In the case of a BTO, the firm offers to buy bonds above their market value, although still below face value. However, these are generally non-negotiable with the offeree since only a minimum amount of the bond repurchases are allowed.[2]
See also
- Tender offer
- Bond exchange offer
- Mini-tender offer
- Mergers and acquisitions
References
- ↑ "Debt Tender Offer". Investopedia. http://www.investopedia.com/terms/d/debt-tender-offer.asp#axzz2H528qTcZ.
- ↑ 2.0 2.1 Kuhlmann, Shirley (Mar 4, 2009). "Corporate and Securities Law Alert: The Anatomy of a Debt Tender Offer". Pepper Hamilton. https://www.pepperlaw.com/resource/1302/11C2.
 |  |
