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The Loan Market Association (LMA) announced today that it has endorsed the market practice recommendations for issuers of non-investment grade debt securities by the European High Yield Association (EHYA), an affiliate of the Securities Industry and Financial Markets Association. The EHYA recommendations encourage issuers of non-investment grade debt securities to disclose material terms of senior debt facilities during the offering, and to update investors regarding completed amendments to and waivers of those facilities as long as the securities are outstanding.
-- The Loan Market Association (LMA) announced today that it has endorsed the market practice recommendations for issuers of non-investment grade debt securities by the European High Yield Association (EHYA), an affiliate of the Securities Industry and Financial Markets Association. The EHYA recommendations encourage issuers of non-investment grade debt securities to disclose material terms of senior debt facilities during the offering, and to update investors regarding completed amendments to and waivers of those facilities as long as the securities are outstanding.
"We are pleased that the leading representative of Europe’s senior debt holders has spoken out in favour of transparency", said Gilbey Strub, managing director of the EHYA. "In uncertain markets, it’s especially important that investors have adequate information about an issuer’s capital structure. We see the move toward greater disclosure as a global trend and we think it makes sense to promote global harmonisation, but we recognize that every region is different and that no single regime is appropriate. We believe the recommendations strike the proper balance between public disclosure and operational flexibility and we’re grateful for the support of the LMA."
"As the trade association for the syndicated loan markets we recognise that greater disclosure aids liquidity and encourages growth", said Clare Dawson, executive director of the LMA. "By encouraging issuers to make key terms of material senior debt facilities available to investors, the industry is showing its commitment to openness."
Craig Abouchar, EHYA chair, added, "We are very pleased to add the endorsement of the LMA to the EHYA recommendations. We look forward to working closely with the LMA to encourage the sponsor community to make these joint practices the de facto market standard."
