bond tender offer

问题如下：

Q. Discuss how Spleenwood expects to profit from a strategy targeting companies with change of control clauses.

选项：

解释：

A change-of control-clause included in a corporation’s covenants requires the issuer to offer to repurchase outstanding bonds at a fixed price at or above par, conditional on a new owner acquiring a specified percentage of the issuer’s voting shares. Thus, Spleenwood will identify issuers with change-of-control clauses on their bonds that are potential takeover targets. By buying the debt of the most likely takeover targets, Spleenwood expects to sell back purchased bonds at a profit once the change-of-control clause is triggered.