The Equipment Leasing & Finance Association (“ELFA”) and National Association of Manufacturers (“NAM”) submitted comments to the U.S. Securities and Exchange Commission on their proposed amendments to rules and forms governing registered offerings.
ELFA and NAM expressed concerns about the proposed rule’s reforms to the registered debt qualification under the WKSI framework. The proposed change would increase the time and expense required to obtain, renew, and maintain effective shelf registration statements, reducing offering readiness and impairing debt issuers' ability to access the market efficiently on short notice in response to funding needs or favorable market conditions. To preserve the ability of captive finance companies and other seasoned debt issuers to continue to use ASRs, we urge the SEC to recognize exchange-listed debt as a qualifying avenue or to retain a registered debt issuance pathway. If the Commission does not opt for either approach, the NAM and ELFA urge the Commission to grandfather captive finance companies and other debt issuers that currently have WKSI status.
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