Bond Tender Offer
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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. 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.


See also

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Tender offer In corporate finance, a tender offer is a type of public takeover bid. The tender offer is a public, open offer or invitation (usually announced in a newspaper advertisement) by a prospective acquirer to all stockholders of a publicly traded corp ...
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Bond exchange offer An exchange offer in finance, corporate law and securities law, is a form of tender offer in which securities are offered as consideration instead of cash. In a bond exchange offer, bondholders may consensually exchange their existing bonds for ...
* Mini-tender offer *
Mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...


References

{{Reflist Corporate finance
Tender offer In corporate finance, a tender offer is a type of public takeover bid. The tender offer is a public, open offer or invitation (usually announced in a newspaper advertisement) by a prospective acquirer to all stockholders of a publicly traded corp ...