Debt Tender Offer

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Dictionary Says

Definition of 'Debt Tender Offer'

When a firm retires all or a portion of its debt securities by making an offer to its debtholders to repurchase a predetermined number of bonds at a specified price and during a set period of time. Firms may use a debt tender offer as a mechanism for capital restructuring or refinancing.
Investopedia Says

Investopedia explains 'Debt Tender Offer'

For example, a firm may have issued bonds during a time when interest rates were high. If interest rates have come down significantly, the firm may want to conduct a new bond offering at a lower rate and then use the proceeds to conduct a debt tender offering in order to buy back the more expensive bonds as a way of cutting costs.

Furthermore, a highly leveraged firm may also wish to use its retained earnings to buy back bonds in order lower its debt-to-equity ratio. Doing so will give the company a greater margin of safety against bankruptcy because the company will be paying less interest.

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'Debt Tender Offer'

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    ... Origination, which deals with equity capital markets and debt capital markets; ... This
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    ... $32 a share in cash and the assumption of $600 million in debt - a total ... pill when
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    ... are very expensive, acquiring companies often issue expensive equity and debt that
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    ... it was offering to pay $22.12 per share in cash in a tender offer for Superior ... but
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