What is the difference between a Buyback and a Tender Offer?
(top) A buyback is when an issuer or its financial sponsor purchases a portion of the issuer’s debt in the secondary market below par, either to cancel the debt or hold as an investment. LCD’s buyback amount would be the entire amount the issuer is planning to purchase, and the tender amount is the amount that has been purchased so far. The tender amount is a best estimate, as the final amounts often are not made public. Issuers do not tender for the entire buyback amount at once. Typically, the amendment stipulates repurchase incrementally through a number of tender offers, often over the period of one year, but this can vary.
