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URL:  https://boards.fool.com/a-quottender-offerquot-always-sounds-like-30234374.aspx

Subject:  Re: If you don't accept a tender offer.. Date:  8/30/2012  2:37 PM
Author:  brewer12345 Number:  34350 of 36525

A "tender offer" always sounds like something you might get in a seedy bar.

Unfortunately, offers like this usually attempt to have a coercive element aimed at any would-be holdouts. In this case (as is pretty common), it sounds like the issuer's aim is to offer a premium price that includes a consent payment to the bondholders. Under the terms of most junk indentures, if a supermajority (usually 2/3 of the issue and/or half of the holders) of bodowners accept the tender and consent payment, the indenture is allowed to be altered for any remaining bonds that did not tender. Most of the time, this alteration takes the form of gutting covenants and other protections in favor of the bondholders. As such, I would suggest that you tender your bonds especially if the offer is par or better. You don't want to be left holding paper tat has lost all of its protections.
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