Structuring a transaction that
addresses an issuer’s capital structure, including
its debt obligations, financial and other covenant limitations,
and debt maturity profile, involves compromise in some
An appropriate liability management transaction that
considers the issuer’s objectives and also
provides sufficient incentives for existing security holders
can be a delicate balancing exercise.
The topic is timely is as in the years following the
financial crisis, low interest rates lead issuers to take on
cheap debt, with some later refinancing through liability
management transactions. Debt management exercises are expected
to increase in the years to come.
In this publication,
Structuring Liability Management Transactions, Mayer Brown
lawyers provide a summary of the US legal framework, including
guidance provided in numerous no-action letters issued over
many years, applicable to debt repurchases, tender offers and
exchange offers. They also present some of the main regulatory
and tax considerations that should be taken into account when
determining the best approach.
here to download a copy of the publication.
For further information, please contact:
Edward S. Best, partner,
Chicago at firstname.lastname@example.org
Thomas A. Humphreys, partner, New
York, at email@example.com
Anna T. Pinedo, partner, New York,
Remmelt Reigersman, partner, Palo
Alto, at firstname.lastname@example.org