exchange offer

exchange offer definition - finance
A situation in which a company, typically one that is bankrupt or nearly bankrupt, asks bondholders to exchange their bonds for new ones that typically pay higher interest rates but have lower face values. Often the maturity of the bonds is lengthened in the exchange offer in order to give the troubled company more time to fix its problems.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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