Convert between point type and paragraph type

You can convert point type to paragraph type to adjust the flow of characters within a bounding box. Alternatively, you can convert paragraph type to point type to make each text line flow independently from the others. When you convert from paragraph type to point type, a carriage return is added at the end of each line of type (with the exception of the last line).

Select the type layer in the Layers panel.
Choose Layer > Type > Convert To Point Text, or Layer > Type > Convert To Paragraph Text.
Note: When you convert paragraph type to point type, all characters that overflow the bounding box are deleted. To avoid losing text, adjust the bounding box so that all type is visible prior to conversion.