medium · Debt Capital Markets
A company is considering a 'tender offer' alongside a new bond issue.
What is the most common strategic objective for this combination?
- To take advantage of falling interest rates without paying a call premium.
- To eliminate the need for future financial reporting by retiring all public bonds.
- To 'term out' the maturity profile by replacing near-term debt with long-term debt.
- To increase total indebtedness while maintaining the same interest expense.
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