Debt Securities Restructuring Options


This practice note examines preliminary considerations that affect whether and in what manner a company may restructure its outstanding debt securities and highlights the important advantages, disadvantages, and differences among them. The restructuring options discussed include (1) cash tender offers, (2) cash purchases (open market and privately negotiated), (3) indenture-specific redemption, and (4) exchange offers (registered and unregistered). This practice note discusses only straight debt securities (i.e., non-convertible debt) and does not discuss restructuring options under voluntary or involuntary bankruptcy proceedings.