LPC Law Notes Finance and Capital Markets Notes
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
The following is a more accessible plain text extract of the PDF sample above, taken from our Finance and Capital Markets Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Outline the differences between a trustee and a fiscal agent and advise which would be best for Alexandria. Explain whether Christine is right or not, giving your reasons.
Choosing between a trustee and a fiscal agency (can’t have both) Technically you could have both but this would involve unnecessary fees, duplication of roles and extra administrative load. where security is not offered and there are no subordination issues, a Fiscal Agent will usually be the best option for the issuer | ||
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TRUSTEE | FISCAL AGENT | |
WHO APPOINTS THEM | Appointed by Issuer | Appointed by issuer (it is the issuer’s representative and agent) |
¿DUTY OWED TO? | Owed under common law and contract (via the trust deed) to the Bondholders | Owed to issuer (via Fiscal Agency Agreement) |
COST | More Expensive as will have to hire a specialist Trust Co. – will also need to pay for a Paying Agent | Cheaper as there are more banks willing to act as Agents – “en plus” the Fiscal Agent also performs role of Paying Agent (pay once only) |
¿WHAT IS THEIR ROLE? |
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SECURED ISSUES |
| Can’t hold security on trust for BHs as he is agent of the issuer and thus acts in the issuer’s interests. |
SUBORDINATED ISSUES |
| Need different agents for senior & junior issues to ensure effective subordination |
ADVANTAGES TO THE BH’s “suing” | In event of default
Insolvency
Issuer’s view
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ADVANTAGE TO THE ISSUER | Where an Event of Default occurs
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On the facts, it looks like a fiscal agent will be more appropriate as Tom wants to save costs & doesn’t have any subordination or any security.
However, an advantage of having a trustee is that both the BHs & the issuer can deal through a middle man. See p13 notes for advantages for BH & Issuer
However, this will cause more cost for Tom which he want to avoid (reason in table above)
Christine is incorrect. You can’t have both as they are legally conflicting.
Trustee takes security over & holds legal title to chose in action = covenant to pay. Responsible for BHs
Fiscal agent doesn’t take legal title to anything and is responsible for Issuer.
Managers and Lead Managers ¿Will the managers be liable to Alexandria if something goes wrong? If so, how? Is there any other agreement which will indirectly affect this?
¿WHO? |
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ROLE OF LEAD MANAGER |
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ROLE OF MANAGERS (SYNDICATE) |
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Buy the full version of these notes or essay plans and more in our Finance and Capital Markets Notes.
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
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