Top 10 Practice Tips: Debt Tender Offers

There are 10 practice points that are intended to help you in assisting an issuer with a proposed debt tender offer for cash. Often, issuers of debt securities seek to manage their liabilities through liability management transactions, including debt tender offers for cash. Given the current economic downturn and market volatility resulting from the COVID-19 pandemic, companies with cash on hand may consider repurchasing their outstanding debt for cash. A cash tender offer consists of a public offer by the issuer to purchase all or a portion of the outstanding principal amount of the relevant debt securities from the holders at a specified price, and subject to conditions, set forth in the issuer’s offer to purchase.