In some instances, an issuer may opt to initiate a series of repurchases of outstanding debt securities in the open market with the assistance of a broker or dealer that will solicit or procure interested sellers of the relevant securities. Alternatively, an issuer (or an affiliate of the issuer) may opt to repurchase outstanding debt securities, in whole or in part, during a single, privately negotiated, transaction between the seller and the purchaser of the debt securities.
There are, however, significant legal, regulatory and disclosure issues relating to a series of related repurchases of debt securities in the open market (as opposed to a single, privately negotiated, purchase of debt securities from a single holder of those debt securities).
For an analysis of significant legal issues applicable to debt repurchases, please read our full client alert: Debt Repurchases in the Open Market and Privately Negotiated Transactions.
