Acting for a trustee in a debt capital markets transaction
Produced in partnership with Charles Farnsworth and Sam Shore of Baker McKenzie

The following Banking & Finance practice note produced in partnership with Charles Farnsworth and Sam Shore of Baker McKenzie provides comprehensive and up to date legal information covering:

  • Acting for a trustee in a debt capital markets transaction
  • Overview of the trustee’s role
  • What are the key concerns of trustees in the negotiation of documents?
  • Fees, costs and expenses
  • Right to indemnification
  • Fulfilling the trustee’s duty of care
  • No duty to monitor
  • Right to resign
  • Role of trustee on enforcement
  • Trustee discretion
  • More...

Acting for a trustee in a debt capital markets transaction

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for DCM lawyers?

This Practice Note provides guidance on the approach that trustee’s counsel would typically take when reviewing bond documentation and the specific points that trustee’s counsel should look for in the documentation. It includes an overview of the trustee's role in a debt capital markets (DCM) transaction, a discussion of some of the key concerns of trustees in the negotiation of documents, the issues arising in connection with an enforcement and an overview of other points that arise in connection with specific types of bond issuances.

Unless otherwise noted, this Practice Note discusses only the transaction structures of English trustees acting under English law governed trust deeds in connection with debt securities issued on a standalone basis.

Overview of the trustee’s role

The trustee is an entity appointed by the issuer to represent the interests

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