Q&As

Can a limited liability partnership (LLP) issue loan notes or other types of debt securities?

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Published by a LexisNexis Corporate expert
Published on: 24 June 2020
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A loan note is a form of debt security which can be issued by a body corporate, ie the issuer, which entitles the holder (the noteholder) to payment of principal and interest in accordance with the terms of the loan note instrument. For an example of a typical loan note instrument used in a private equity context, see Precedent: Loan note instrument—buyout—corporate investors.

A Limited liability partnership (LLP) is not a partnership but a body corporate that is formed under the Limited Liability Partnerships Act 2000 (LLPA 2000). This means that

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United Kingdom
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Key definition:
Limited Liability definition
What does Limited Liability mean?

Arises due to the legal separation of a business entity from those who own it. The liability of the shareholders of a company limited by shares is limited to the amount unpaid, if any, on the shares held by them. This distinguishes companies from sole traders and general partnerships.

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