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 ?
(NYSE: LLL) ("L3") have 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 for (1) up to USD 3,350,000,000 aggregate principal amount of new notes issued by Harris (the "New Harris Notes") and (2) cash, the companies said.
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.
HONG KONG, Mar 1, 2019 - (ACN Newswire) - MIE HOLDINGS CORPORATION ("MIE" or the "Company") has announced the commencement of its offer to exchange (the "Exchange Offer") any and all of the outstanding 7.50% Senior Notes due 2019 issued by the Company and unconditionally and irrevocably guaranteed by the subsidiary guarantors (the "Existing Notes") for the exchange consideration, upon the terms and subject to the conditions set forth in the exchange offer memorandum dated March 1, 2019 (the "Exchange Offer Memorandum").
Global Banking News-February 12, 2019-Priority Technology Holdings declares effectiveness of registration statement for exchange offer and consent solicitation for warrants
With the extension in place, the exchange offer is now set to expire at 5:00 p.m.
The Early Tender Date for the offer to exchange 7.75% senior notes due 2020 ("2020 Notes") for new 9.375% senior second lien notes due 2024 (the "New 2024 Notes") (the "2020 Exchange Offer") has been extended to the expiration date for the 2020 Exchange Offer, which is 11:59 p.m., New York City time, on July 20, 2018.
Stated another way, based on such closing price, for each $1.00 of AC Class A common stock accepted in this exchange offer, AC stockholders will receive approximately $1.15 of GBL Class A common stock.
has commenced its exchange offer for the separation of its radio business.
2 November 2015 - Finnish mobile device maker Nokia has filed its draft public exchange offer document (note d'information) with the AMF relating to its proposed public exchange offer for the shares of French mobile telecommunications company Alcatel-Lucent, the company said.
M2 PHARMA-May 18, 2015-AbbVie extends exchange offer to purchase Pharmacyclics to 22 May 2015
As a result of the extension, the exchange offer is now scheduled to expire at 5:00 pm ET on October 1, 2013, unless further extended.The exchange offer was originally set to expire at 5:00 pm ET on September 26, 2013.