exchange offer

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Exchange offer

An offer by a firm to give one security, such as a bond or preferred stock, in exchange for another security, such as shares of common stock.

Exchange Offer

An offer by a company to trade stocks or bonds for other stocks or bonds. For example, a firm may redeem bonds with other bonds of equivalent value. This often occurs when the firm has poor cash flow. Likewise, a company may redeem stocks in itself for other stocks, either in the same or another firm. An exchange offer of stocks is common following a merger or acquisition.

exchange offer

An offer by a firm to exchange its own securities for those of another firm or for a different series of the same firm's securities. For example, a firm may offer a new bond issue in exchange for an older series currently outstanding. Depending on the type of securities included in the offer, the security holder may be taxed for the exchange.
Case Study In April 2001 AT&T offered its stockholders shares in AT&T Wireless Group in exchange for shares of AT&T Corp. The exchange offer was intended to split off AT&T Wireless from the parent company as part of the firm's planned restructuring into three separate and independent corporations. At the time of the offer, AT&T owned approximately 70% of AT&T Wireless that traded on the New York Stock Exchange as a tracking stock. Japan's Nippon Telegraph & Telephone had earlier paid nearly $10 billion for 16% of AT&T Wireless. According to terms of the exchange offer, AT&T would issue 1.176 shares of AT&T Wireless Group for each share of AT&T stock. The exchange ratio represented a 6.5% premium compared to AT&T's common stock, which was then trading for $22 per share. AT&T announced it would accept up to 427.7 million shares of its common stock in the exchange, which would be conducted on a pro rata basis in the event AT&T stockholders tendered more than 427.7 million shares.
References in periodicals archive ?
The Company expects to consummate the exchange offers by March 25, 2004, at which time the tendered notes will be exchanged for an aggregate of approximately 223 million shares of Revlon's Class A common stock, which includes shares issued in exchange for accrued interest.
today announced that it has launched exchange offers (the "Exchange Offers") for $175 million outstanding principal amount of its 10 1/2 percent Senior Notes due 2004 ("2004 Notes") and $125 million outstanding principal amount of its 9 5/8 percent Senior Notes due 2005 ("2005 Notes" and, together with the 2004 Notes, the "Existing Notes") and solicitations of consents to amend the indentures under which the Existing Notes were issued.
375% Cointel Series B Notes due 2004 (the "Cointel Series B Notes")) for two new series of TASA notes plus a cash payment (the "Cointel Exchange Offers" and together with the TASA Exchange Offers, the "Exchange Offers").
Each of the Exchange Offers was conditioned upon the receipt of at least of 90% of each class of existing notes.
The Company also announced that it has extended the expiration date of each of the Exchange Offers to 11:59 p.
875% notes due 2006 that were issued last year are not part of the proposed exchange offers.
NYSE:TMM) (BMV:TMM A) ("Grupo TMM" or the "Company") announced today that it has extended the expiration date of its previously announced exchange offers and consent solicitations for all of its outstanding 9 1/2 percent Senior Notes due 2003 ("2003 notes") and its 10 1/4 percent Senior Notes due 2006 ("2006 notes") until midnight, New York City time, on May 15, 2003.
NYSE:TMM) and (BMV:TMM A) announced today that it has extended the expiration date of its previously announced exchange offers and consent solicitations for all of its outstanding 9 1/2 percent Senior Notes due 2003 and its 10 1/4 percent Senior Notes due 2006 until 5:00 p.
NYSE:TMM) and (BMV:TMM A) announced today that it has filed a registration statement that would amend its previously announced exchange offers and consent solicitations for all of its outstanding 9 1/2 percent Senior Notes due 2003 ("2003 notes") and its 10 1/4 percent Senior Notes due 2006 ("2006 notes").
Weyerhaeuser Company (NYSE:WY) today made two announcements regarding its exchange offers for five series of its debt securities.
Information in this press release concerning the exchange offer should be read in conjunction with Carrier1's Exchange Offers and Consent Solicitations Statement (the "Statement") dated January 4, 2002.