SEC permits abbreviated tender and exchange offers for non-convertible high-yield and investment-grade debt securities

Abstract

Purpose

To advise companies of a recent SEC no-action letter relating to tender and exchange offers for certain debt securities.

Design/methodology/approach

Reviews various conditions allowing an issuer to use a shortened timeframe in which certain debt tender/exchange offers need be kept open for as few as five business days.

Findings

The abbreviated debt tender/exchange offer structure contemplated by the no-action letter provides a more efficient mechanism for conducting debt tender/exchange offers in certain circumstances.

Practical implications

Issuers conducting a debt tender/exchange offer should consider whether the new abbreviated structure is more effective in achieving their objectives than the more traditional structures.

Originality/value

Practical guidance from experienced securities regulatory lawyers that gives an overview of important developments in debt tender/exchange offer practice.

Citation

Blumenstein, I.B., Maki, J.E. and Owen, J.T. (2015), "SEC permits abbreviated tender and exchange offers for non-convertible high-yield and investment-grade debt securities", Journal of Investment Compliance, Vol. 16 No. 3, pp. 28-29. https://doi.org/10.1108/JOIC-06-2015-0040