A Path To Capital Markets For Private Entities

Law360, New York (April 4, 2013, 12:52 PM EDT) -- Many privately or family-owned entities may believe access to U.S. capital markets is foreclosed due to burdensome and cost-prohibitive regulatory requirements. With interest rates at historical lows and a robust supply of dollars available to borrow, many privately owned entities are selling so-called high yield notes in Rule 144A[1] for life offerings.

These notes are sold in underwritten private offerings only to qualified institutional buyers (QIBs)[2] with no covenant made by the issuer to exchange them in a future exchange offer for notes registered under the...
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