McDermott Will & Emery

This Practice Note explains what bridge to bond facilities are and how a bridging loan can be used as an interim facility in an acquisition finance transaction until high yield bonds are issued as more permanent financing. It explains the mechanics of these facilities, their key documents and terms and typical deal structures. It also provides practical guidance for negotiating these facilities and looks at the differences between US and European practice.

This is a template closing memorandum for use in a high-yield bond transaction. It sets out steps to be taken during the course of a high-yield bond transaction. Additional documents or steps (such as escrow arrangements) may be required, depending on the specific transaction. This pro forma closing memorandum has been drafted on the basis of a high-yield bond issuance which is secured, has the benefit of guarantees from the issuer group, is rated and is listed on a stock exchange, and where the issuer is relying on Regulation S and Rule 144A of the US Securities Act 1933.