Investors must put a price on senior secured transparency

Author: | Published: 23 Nov 2010

Investors wanting more transparency on European senior secured notes need to work together and put a price on the information, according to a high-yield partner.

While the US has the Edgar (Electronic data gathering, analysis and retrieval) system for lodging documents publicly, in Europe the level of disclosure in the offering documentation is at the discretion of issuers and their counsel.

A London high-yield partner said that it is up to investors to band together and link pricing of a deal to transparency. “Do investors really think it’s bad not having it? They haven’t penalised companies for not giving it to them,” the partner said.

Given there is no regulatory requirement for transparency, there is little incentive for private equity groups or financial sponsors to give details of credit agreements if they aren’t going to affect the execution or the pricing of the deal....