The following Restructuring & Insolvency practice note Produced in partnership with Katerina Papamichael of D F King (Europe) Limited provides comprehensive and up to date legal information covering:
Companies, governments and municipalities issue bonds to finance their operations and fund projects. The bond market offers a very efficient way to borrow capital. Although many companies are legally entitled to borrow from a bank, the process is often costly and time consuming. Issuing bonds is generally viewed as easier, less restrictive and a cheaper way than borrowing money directly from a bank. For more information, see Practice Notes: Introduction to the debt capital markets and Bonds and notes.
For information on the key documentation and parties to an issue of debt securities, see Practice Notes: Issuing debt securities—key documentation and Parties in an issue of debt securities.
In the past, not a lot of interest was shown by issuers in communicating with their bondholders unless there was an absolute need, and even then the communication simply consisted of a notice sent through the trustee and would eventually not necessarily reach all the beneficial owners.
The trustee is a financial institution with trust powers, such as a commercial bank or trust company that is given fiduciary powers by a bond issuer to enforce the terms of a bond indenture. Bond indenture is a document that constitutes a contract between a bond issuer and a bondholder and includes the terms and conditions of the bond.
The trustee monitors the bond issuer’s compliance with agreed-upon
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On 29 August 2015, the Prudential Regulation Authority (PRA) published the PRA Rulebook (Rulebook). The transition from the Handbook to the Rulebook was intended to benefit PRA-authorised firms, to access clearer and more concise rules. Alongside the Rulebook, supervisory statements and statements
This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European lending market for institutional investors.This
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies,
A limited company that proposes to issue redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006).Why do companies issue redeemable shares?A company may wish to issue redeemable shares so that it has an alternative way to return surplus capital to shareholders without
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