Contributed By Walkers
The most common structures are wholesale debt issuances (ie, debt securities with a minimum denomination of EUR100,000) with a trustee appointed to represent the holders of the debt securities. Typically, a trust deed constituting the debt securities is entered into between the issuer and the trustee on the issue date. Under the terms of the trust deed the issuer will, amongst other things, covenant with the trustee to pay all amounts of interest and principal under the debt securities. Often, in secured deals, the trustee will act as security trustee and hold the security for itself and for the benefit of the other secured parties. Both the GEM Rules and the Euronext Rules provide that, in the context of an issuance of asset-backed securities, there must be a trustee or other appropriate independent party appointed to represent the interests of the holders of the debt securities. Typically, the issuer will also appoint a number of agents to carry out various administrative functions relating to the ongoing administration and maintenance of the issuer and the debt securities. For a more detailed summary of the various agents and other parties to a typical debt offering please see section 5 Parties to an Offering of Debt Securities below.