Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Fibreboard Corporation Deal - Lehman Brothers Collection

Fibreboard Corporation

Company Dealexchange offer 6 3/4% convertible subordinated debentures
Transaction TypeConvertible Subordinated Debentures
Deal DescriptionFibreboard 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.
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