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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: Union Carbide (DOW) 7.75 of '96 Tender Offer Date: 3/3/2011 10:02 AM
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Joel, this sort of tender is easy to understand if you are a bond pro and have access to a Bloomberg terminal, and pretty opaque for everyone else. What they are offering is to buy back some bonds based on a yield spread to a reference security, in this case a 2040 treasury. Since I have a bloomberg terminal, I plopped down for 30 seconds and got you the range of tender dollar prices based on the two spreads. 290BPs is equal to a dollar price of 103.07. 260BPs is equal to a dollar price of 107.35. So add 3 points to those prices if you get your response in by the deadline and the firm is offering to repurhase the bonds between 106.07 and 110.35. Note that the offer is only to repurchase a portion of the outstanding debt, so you might get a partial redemption if you choose to play alond.

Were I in your shoes, I would probably submit my 11 bonds with the minimum tender price (103.07). YMMV.
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