Tender offers and other debt-refunding options

Journal Article · Thu Dec 08 04:00:00 EST 1977 · Public Util. Fortn.; (United States)

OSTI ID:5288038

Pollack, S G

When interest rates on long-term debt are prevailingly lower than they were for extended periods in the recent past, an opportunity is present for management to improve the financial strength of a business by replacing high-interest debt with lower-interest debt. Three refunding options are available: the cash sinking fund exercisable throughout the life of a debt; the redemption exercisable after the call protection of the debt expires; and the tender offer which can be made from the date of issuance to the date of first call. In this article, the author concentrates upon the third of these options--which seems also to be the least familiar and most infrequently encountered. Those factors which will determine the comparative profitability of this refunding option are examined.

• Research Organization: Public Service Co. of Colorado, Denver
• OSTI ID: 5288038
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:12; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CAPITAL
COMMERCE
COMMERCIAL SECTOR
FINANCING
LEGAL ASPECTS
MANAGEMENT
PUBLIC UTILITIES
REGULATIONS