Capped tender offer

Securities - repurchase.

In this context, a tender offer is a formal statement made by an organisation that has issued securities that have not yet reached their final maturities, that the organisation wishes to repurchase some or all of the securities previously issued.

A capped tender offer is a tender offer in which the total aggregate purchase price for all the securities to be repurchased is limited to a specified amount.

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.

See also

• Acceptance
• Cap
• Maximum acceptance cap
• Offer
• Repurchase
• Security
• Tender
• Tender offer

Other resources

• Dentons DCM - Quick Guide to Cash Tender Offers - August 2023
• ACT Deals of the Year Awards 2023: Bonds above £750m winner - BAT