14.3 In March 1990, Ingersoll Publications, Inc. offered to buy back some of its high-yield

(junk) bonds at sharp discounts from face value. The company offered to purchase as much as 80% of its $125 million of 13% reset notes issued by Ingersoll’s Community Newspapers, Inc. unit for 55% of principal amount. The 13% reset notes have been trading around $390 to $420 for $1,000 notes. It also offered to buy as much as 51% of its $114.9 million of 14.75% discount debentures for 25% of principal amount. The debentures have been trading in the low $200 range for $1,000 notes. Ingersoll Publications was reportedly negotiating a $600 million bank facility from Chase Manhattan Bank, some of which would be used to fund the tender offer. The offer was subject to several conditions, including receipt of sufficient financing and the tender of 51% of the principal amount of each issue.