medium · Debt Capital Markets credit-ratings-risk
If an issuer meets its portability threshold, what notice must it provide to bondholders?
- It typically provides a notice stating that a change of control occurred but no put will be offered.
- No formal notice to the bondholders is required at all whenever the portability test is passed.
- It must obtain a written 'fairness opinion' from an investment bank validating the leverage math.
- It must distribute a fully refreshed 144A offering prospectus to every record holder within a 48-hour window.
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