Q&As

Can an issuer amend the maturity date or duration of a bond?

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Published on LexisPSL on 01/10/2018

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • Can an issuer amend the maturity date or duration of a bond?

Can an issuer amend the maturity date or duration of a bond?

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?

In this Q&A, it has been assumed that there has been no event of default, and so the notes have not been accelerated.

An issuer of bonds is the entity wishing to raise finance in the debt capital markets. The issuer will appoint an agent or (more normally) a group of agents to carry out various administrative duties for it in connection with the issue. One agent will co-ordinate the whole process. The term used to describe this entity depends on whether the structure involves a trustee or not. If the issuer chooses to appoint a trustee, the bonds will be constituted by a trust deed. The trust deed will also set out the duties of the trustee and the issuer’s main agent will usually be the principal paying agent.

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