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An offer by an issuer of debt securities to exchange new securities with less onerous provisions for currently outstanding securities. Companies often make exchange offers in an attempt to avoid bankruptcy.
Exchange offer (Wikipedia)
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An exchange offer, in finance, corporate law and securities law, is a form of tender offer in which securities are offered as consideration instead of cash.
In a bond exchange offer, bondholders may consensually exchange their existing bonds for another class of debt or equity securities. Companies will often seek to exchange their securities to extend maturities, reduce debt outstanding or convert debt into equity.
