Tender offer
From ACT Wiki
1. Securities - repurchase.
A formal statement made by an organisation that has issued securities that have not yet reached their final maturities, that wishes to repurchase some or all of the securities previously issued.
Legal basis of tender offers under English law
- "A tender offer is actually an “invitation to treat” under English law, by which an issuer
(or someone acting on the issuer’s behalf), indicates that if the issuer’s bondholders are prepared to offer certain bonds for repurchase, the issuer is willing to consider accepting that offer on the terms set out in a tender offer memorandum.
- Therefore, pursuant to English contract law, it is the bondholders’ submission of their bonds and tender instructions pursuant to the terms of the tender offer memorandum that forms the “offer” under contract law, which is then “accepted” by the issuer, creating a binding contract."
- Dentons Debt Capital Markets - Quick Guide to Cash Tender Offers - August 2023.
- BAT's $2.9bn capped tender offer
- "On 31 July 2023, after 18 months’ preparation including non-deal roadshows and internal stakeholder engagement, and following the release of BAT’s half-year results, the company launched a new USD benchmark five tranche transaction, ahead of an expected busy post-Labor Day issuance period.
- At the same time, the company announced a concurrent $2.9bn capped tender offer, targeting GBP, EUR and USD notes maturing between 2024 and 2027."
- ACT Deals of the Year Awards 2023: Bonds above £750m winner.
2. Securities - issuance.
An offer for sale of a company's securities at a uniform price (above a specified minimum) that is determined by bids received such that all the securities are subscribed for.
See also
- Acceptance
- Bid
- Capped tender offer
- English law
- Invitation to treat
- Non-deal roadshow
- Notes
- Offer
- Offer for sale
- Order book
- Security
- Stakeholder
- Tender
- Tender panel
- Tender to contract cover
- Tranche
