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This month, Standard & Poor's Ratings Services ("S&P") sent letters to all issuers of the bonds it rates advising the issuers to provide all relevant documentation related to any private debt, including bank loan financing, that the issuer enters into.
What Type of Debt Does S&P Want Disclosed?
What Documentation Is S&P Looking For?
When Does S&P Want the Information?
What Is the Consequence of Not Disclosing?
While S&P is requiring direct disclosure of the referenced debt to it, bondholders and their representatives have also encouraged issuers to voluntarily post information about such bank loans and private debt on the Electronic Municipal Market Access ("EMMA") website, which is maintained by the Municipal Securities Rulemaking Board ("MSRB"). In 2012, the MSRB published a notice in which it encouraged, but did not mandate, issuers to post such information in order to provide timely access to investors and other market participants to allow them to make informed investment decisions. The MSRB encouraged the filing of either a PDF of the appropriate loan documents or a summary of the transaction, including the name of the lender, payment dates, maturity and amortization, prepayment provisions, purpose, security, tax status, guarantees, events of default, and remedies, among other information.
Any issuer considering voluntary disclosure on EMMA or with questions on when and what to send to S&P may wish to consult with counsel prior to any disclosure. The attorneys in Day Pitney's Municipal Finance Group routinely counsel clients on such matters. Please feel free to contact any of the attorneys listed to the right of this alert if you would like to discuss this alert or your disclosure obligations.
On June 29, Day Pitney Partner Namita Shah, chair of the firm's Private Equity and Finance Practice, is the moderator for "The 10th Anniversary of The Attorneys of Color Symposium: A Celebration of Progress and Perseverance," hosted by Quinnipiac University School of Law.
Day Pitney Alert
Day Pitney Alert
Day Pitney Alert
Partner and Chair of Day Pitney's Private Equity and Finance group Namita Shah was featured in the Diverse Lawyers Network newsletter for being a recipient of a South Asian Bar Association (SABA) of North America's Cornerstone Award for 2022.
Partner and Chair of Day Pitney's Private Equity and Finance group Namita Shah was featured in Law360 Pulse for being a recipient of a South Asian Bar Association (SABA) of North America's Cornerstone Award for 2022.
Day Pitney Press Release
Day Pitney Press Release
Day Pitney Press Release
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