Fibreboard Corporation
| Company Deal | exchange offer 6 3/4% convertible subordinated debentures |
|---|---|
| Transaction Type | Convertible Subordinated Debentures |
| Deal Description | Fibreboard Corporation used the exchange offer in this transaction to increase the company's capacity to raise additional funds. This increased capacity results from the consequent immediate reduction of long-term debt resulting from the lower principal amount of the new debentures issued in the exchange and the corresponding increase in the company's net worth, and through the possible earlier conversion of the new debentures at the reduced conversion price. Such increased capacity to raise funds was desirable so that additional projects needed for the company's operations may have been financed. |