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 ?
M2 EQUITYBITES-June 6, 2019-Harris commences exchange offers; L3 Technologies commences consent solicitations
TELECOMWORLDWIRE-June 6, 2019-Harris commences exchange offers; L3 Technologies commences consent solicitations
announced that, in connection with the anticipated combination of Harris and L3, Harris has commenced offers to eligible holders to exchange (each an Exchange Offer and collectively, the Exchange Offers) any and all outstanding notes issued by L3 as set forth in the table below (the Existing L3 Notes) for (1) up to $3,350,000,000 aggregate principal amount of new notes issued by Harris (the New Harris Notes) and (2) cash.
DENVER -- (BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) today announced that it has extended the previously announced offers to exchange (each, an "Exchange Offer" and, collectively, the "Exchange Offers") any and all outstanding notes issued by Goldcorp Inc.
As previously announced, the Exchange Offers and Consent Solicitations are currently scheduled to expire at 5:00 p.m., New York City time, on March 15, 2019.
Full details of the terms and conditions of the Exchange Offers are provided in the Exchange Offer Memorandum to be distributed to Eligible Holders of the Existing Notes.
are extending the early tender date (the "Early Tender Date") of each of their previously announced exchange offers with respect to certain series of their outstanding senior notes.
BANKING AND CREDIT NEWS-December 22, 2017-Bank of America increases maximum new notes amounts in previously announced exchange offers
Accordingly, with insufficient corporate cash to repay maturing debt and few, if any, opportunities to issue new debt, many issuers are looking at exchange offers as a way to address maturity issues.
Auto Business News-28 April 2009-GM starts public exchange offers for unsecured public notes(C)2009 ENPublishing - http://www.enpublishing.co.uk
On March 21, 2001, the SEC Division of Corporation Finance issued an exemptive order granting exchange offers that meet certain conditions exemption from Rule 13e-4(f)(8)(i)(the "all holders" rule) and Rule 13e-4(f)(8)(ii) (the "best price" rule).
M2 EQUITYBITES-December 22, 2017-Bank of America increases maximum new notes amounts in previously announced exchange offers