Why repurchase debt

The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with each purchase of Notes pursuant to a Debt Repurchase Mandatory Offer pursuant to this Section 4.

Sample 1. Sample 2. Sample 3. Debt Repurchase shall have the meaning provided in Section 9. Debt Repurchase has the meaning provided in Section 7. Debt Repurchase means the repurchase by the Parent by means of a tender offer or, in lieu thereof , private negotiations of a portion of the Subordinated Notes at a discount from the principal amount thereof with the proceeds of the Term B Loans hereunder and the cancellation of such Subordinated Notes upon consummation of such repurchase.

Debt Repurchase shall have the meaning provided in Section Debt Repayment means the repayment, prepayment, repurchase or defeasance of the Indebtedness of the Borrower under the Indebtedness that is identified on Schedule 1. Securities accepted in the tender offer are typically purchased, retired, and canceled by the issuing company, and will no longer remain outstanding obligations on the financial statements. A company that does not have access to the cash necessary to issue a cash tender offer, meanwhile, can make an offer to holders of its outstanding debt securities, agreeing to exchange newly issued debt for the outstanding debt securities.

The terms of the newly issued debt will usually be more favorable to the issuing company. Debt tender and exchange offers for straight debt securities are subject to the tender offer rules outlined in the Securities and Exchange Commission's SEC Regulation 14E under the U.

Securities Exchange Act of Regulation 14E prohibits purchases and sales based on material, non-public information. The debt tender offer only stands for a limited time. In addition, the offer to purchase the bonds is set at a price above the current market value but below the face value of the bonds. Since only a minimum amount of the bond repurchase is allowed, the investors cannot negotiate the terms of the debt tender offer.

On Oct. The offer expired on November 3, Electronic Codes of Federal Regulations. Corporate Bonds. Fixed Income Essentials. Convertible Notes. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

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What Is a Leveraged Buyback? Key Takeaways A leveraged buyback is a financial transaction that lets a company repurchase some of its stock by using debt. The process boosts the remaining owners' shares by limiting the number of shares that are outstanding. Companies sometimes use leveraged buybacks to protect themselves from hostile takeovers by having extra debt on their balance sheets. More often the purpose of these kinds of buybacks is to increase earnings per share EPS and improve other financial metrics.

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