How EU and US private placement models compare

Author: | Published: 16 Jul 2018

Similarities and differences exist between the US Model X Forms and Europe’s LMA documentation

Private placements have continued to offer a useful financing alternative in both the US and European markets. The development in the US of the American College of Investment Counsel's (ACIC) model form note purchase agreements is accepted as one of the contributing factors to the successful standardisation and growth of the US private placement market. The ACIC Model X Form No. 1 Note Purchase Agreement (Model X Form 1) and Model X Form No. 2 Note Purchase Agreement (Model X Form 2 and, together with Model X Form 1, the Model X Forms), governed by New York law, have become industry standard in the US market and are often adapted for use in cross-border transactions. Historically, most investors participating in these types of transactions have been US-based insurance companies or pension funds. As a result,...