Why would a company offer to purchase all of their oustanding Senior Subordinated Notes?

Question

My wife owns stock in a company that released a press release stating this info. What does that mean for that company and what should she do

Answer 1

senior subordinated notes are a form of debt.

when times are good and company is making money, it is prudent to reduce debts outstanding so your future payments are reduced ... thus they retire their debts.

also, if there is collateral for the notes, they might be preparing to sell the collateral [the property securing the payment].


as a shareowner, your wife need do nothing.

Answer 2

A few times I've received good results. I remember once, mailing off a complaint to the head of a movie chain, and listing 8 things that I found wrong with one of their theaters and its management. I received a nice thank you. They'd visited that theatre with my complaints, fixed them all, and got a new manager. They sent me 6 free passes to any of the theaters in their chain. Said they'd never have noticed how bad that theatre was, without my comments. Not too long ago, writing to the owner of the only restaurant in our little town. Complained that it took over an hour to get our food. Almost an hour and a half. The food was burnt to a crisp and stone cold. I got a thank you back. Owner did not know the kids working there were playing video games. So I got a gift certificate for the amount I'd spent there. I redeemed it a couple weeks later, and found a brand new manager making sure the service was really good. It is a nice place to eat now. I am pleased that the waitresses are friendly to me.