The High Yield Offering: An Issuer’s Perspective

Mark B. Tresnowski and Gerald T. Nowak of Kirkland & Ellis LLP

High Yield Offering Table of Contents

Introduction

  1. GEARING UP FOR THE OFFERING
    1. Preparing the Company
      1. Financial Statements
      2. Company Description
      3. Due Diligence
    2. Assembling the Team
      1. Company Management
      2. Investment Bankers
      3. Company Counsel
      4. Initial Purchasers’ Counsel
      5. Auditors
      6. Trustee
      7. Financial Printer
    3. Expenses
  2. MANAGING THE PROCESS
    1. The Organizational Meeting
    2. Drafting the Offering Memorandum
    3. Due Diligence
    4. Negotiating the Indenture
    5. The Road Show and Pricing the Offering
    6. Closing
  3. THE OFFERING MEMORANDUM
    1. Box Summary
    2. Risk Factors
    3. Pro Forma Financial Data
    4. Management’s Discussion and Analysis
    5. Business
    6. Management; Certain Relationships
    7. Description of Other Indebtedness
    8. Description of Notes
    9. Other
  4. THE CREDIT PARTIES
    1. The Issuer
    2. Guarantors
    3. Nonguarantor Foreign Subsidiaries
    4. Restricted Subsidiaries
    5. Unrestricted Subsidiaries
  5. THE COVENANT PACKAGE
    1. The Indebtedness Covenant
    2. The Restricted Payments Covenant
    3. The Dividend Stoppers Covenant
    4. The Limitations on Liens Covenant
    5. The Asset Sales Covenant
    6. The Transactions with Affiliates Covenant
    7. Other Covenants
  6. THE A/B EXCHANGE
    1. The Exchange Offer
    2. The Registration Rights Agreement
    3. The Registration Statement
  7. LIVING WITH THE HIGH YIELD INDENTURE
    1. Ongoing Reporting Requirements
    2. Interpretive Questions
    3. Compliance Certificates
    4. Amendments
    5. Defaults
  8. THE SARBANES-OXLEY ACT
    1. Provisions Applicable upon Issuance of Notes
    2. Provisions Applicable upon Filing of Registration Statement
    3. Other Considerations
  9. RULE 144A
    1. Registration Exemption
    2. Qualified Institutional Buyers (QIBS)
    3. Notice to Investors
    4. Permitted Securities
    5. Information Requirements

APPENDIX A: ANNOTATED HIGH YIELD INDENTURE COVENANTS

Permitted Indebtedness Covenant

Restricted Payments Covenant

Liens Covenant

Affiliate Transactions Covenant

Asset Sale Covenant

Securitization Riders

APPENDIX B: PRELIMINARY PROCESS TIMELINE FOR NOTES OFFERING

APPENDIX C: SARBANES-OXLEY ACT OF 2002

Significant Provisions Applicable to High Yield Issuers

Significant Provisions Inapplicable to High Yield Issuers

APPENDIX D: TYPICAL DISCLOSURE RELATING TO EXCHANGE OFFER; REGISTRATION RIGHTS

APPENDIX E: QUESTIONNAIRE FOR OFFERING MEMORANDUM

APPENDIX F: SAMPLE EXXON CAPITAL LETTER TO SEC

INDEX

 

 


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