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.
Day Pitney Alert
Joy Harmon Sperling and Rachel Packer wrote an article, "No Such Thing As A Free House? NJ Court Says Otherwise," for Law360. The article examines a recent unpublished opinion rendered by the Superior Court of New Jersey, Bergen County in Anim Investment Co. v. Shaloub, No. F-30508-15, 2015 N.J. Super. Unpub. LEXIS 3042 (Ch. Div. June 30, 2016).
Day Pitney Advisory
Judith Blank and Kristin Burgess authored the article, "Anti-discrimination rules for contractors expanded," for the Fairfield County Business Journal. The article discusses best practices for the recent changes in the state's nondiscrimination, affirmative action and supplier diversity program, and how statutes will be extended to municipalities and quasi-public agencies pursuant to recent legislation starting on October first.
Day Pitney Press Release
Hartford, Conn., May 26, 2016 - Day Pitney LLP represented the State of Connecticut as lead bond counsel and disclosure counsel in a general obligation refunding bond sale of $501.4 million. The sale resulted in saving of $75.5 million in debt service costs over the life of the refinanced bonds. The Nappier administration has an active debt refunding program which has saved taxpayers $1.1 billion to date.
Hartford, CT, March 23, 2016 - Day Pitney LLP represented the State of Connecticut as disclosure counsel in a general obligation bond sale of $550 million.
Day Pitney was mentioned in an article, “Green Bonds Feature in Coming Connecticut GO Sale,” in The Bond Buyer. The firm was mentioned as lead bond counsel and lead disclosure counsel for the State of Connecticut’s sale of $650 million general obligation bond sale that includes a $65 million green-bond series. Day Pitney partners Namita Tripathi Shah, Judith Blank and Douglas Gillette are advising on the transaction, along with counsel Glenn Rybacki
Stamford, Conn., August 24, 2015 - Day Pitney is pleased to announce that 68 attorneys have been selected for inclusion in the 2016 Best Lawyers in America. Best Lawyers ranks lawyers through peer-review surveys, and has been published annually since 1983.