Prior results do not guarantee a similar outcome. A tender offer is an alternative to the often-lengthy merger and acquisition negotiations between boards of the two companies, with additional shareholder meetings scheduled for approvals. Each "window" is reasonably fact-specific and dependent on how information typically crystallises before each report (for example, a company with far-flung operations that take a long time to consolidate may be comfortable that their results come together quite close to a reporting date, whereas companies that have fewer jurisdictions or tighter controls may be more sure of their results earlier). Post by CROCKD » 16Feb2017 15:45. The most prominent among these tests are the so-called "Wellman" factors (as developed in Wellman v. Dickinson, 475 F. Supp. NY 1985)), where the court found that a combination of privately negotiated and open market repurchases of equity securities totalling less than 25% of the total outstanding securities did not constitute a tender offer. 783, 823-824 (S.D.N.Y. If I wanted to sell my bond today, why would I not just sell it directly and take the $850.25?
@Xalorous $850.25 is the current value if I were to sell it now. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Service. eligible to receive an Early Tender Premium of $30 per $1000 P.A. We are frequently asked whether bond repurchase programs need to be disclosed (and when).
So US courts have stepped into the void, setting forth various factual tests to determine whether or not a securities repurchase program is actually a tender offer.
European high yield bond indentures typically permit voluntary repurchases of bonds with no limit (and sometimes affirmatively include a statement to the effect that they are permitted). Why does "elite" rhyme with "beet" rather than "bite"?
rev 2020.10.26.37891, The best answers are voted up and rise to the top, Personal Finance & Money Stack Exchange works best with JavaScript enabled, Start here for a quick overview of the site, Detailed answers to any questions you might have, Discuss the workings and policies of this site, Learn more about Stack Overflow the company, Learn more about hiring developers or posting ads with us. This is also usually expressly stated in the offering memorandum related to issuance of the bonds. In the current environment, issuers may start to consider whether, if their bonds are trading at a discount to par (or may be in the future), they should repurchase their bonds.
Although these rules regulate tender offers, they, somewhat unhelpfully, do not define what a tender offer is. Some practitioners in the market take the view that this "25%" rule may not necessarily apply to repurchases of debt securities, because the context and potential effect of a debt repurchase versus an equity repurchase are different. Why would I ever put my money into a savings account that returns less than the current inflation rate?