Management and Organizational Studies 2310A/B Chapter Notes - Chapter 15: Call Option, Tender Offer, Capital Structure

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Danny Morrison

Document Summary

Private debt: debt tht is not publically traded. Private placements: bond issue that does not trade on the public market but rather is sold to a small group of investors, less costly to issue and simple promissiory note is sufficient. The prospectus: a prospectus or offering memorandum must be produced that describe the details of the offering, must include indenture: a formal contract that specifies the firms obligations to the bond holders. : notes, debentures, mortgage bonds, and asset backed bonds: unsecured debt: in the event of bankruptcy bondholders have a claim to only the assets of the firm tht are not already pleged as collateral on other debt. International bond markets: domestic bond: issued by a local entity and traded in a locked market, but purchased by foreigners. Denominated in local currency: foreign bonds: conds issued by a foreign company, in a local market, intended for lovcal investors.