Exchange Offer

An Exchange Offer is a financial process where a company invites investors to trade their existing securities, such as bonds or shares, for new ones. This strategy is often used to restructure debt, improve balance sheets, or raise new capital. Investors might accept the offer if they believe the new securities are more advantageous or if the company is adjusting its financial structure for growth or stability. It provides a way for companies to manage their obligations more efficiently while giving investors an opportunity to reassess their holdings based on current or future prospects.