University of Law 2018/2019
Banking & Debt Finance Prep & Workshop Notes
Workshop 1: Intro to Debt Securities
Bonds: essentially an IOU; it is a promise to repay (or pay) money to an investor usually with
interest.
Prep Task 1: Parties in Bond Issue
Party Explanation of Role Entity Performing Role for
Unite Group PLC
Issuer The entity that is raising the Unite Group plc
debt finance. The borrower.
Guarantor The entity guaranteeing that None. (usually have guarantor
the borrower will pay back if you don’t have many assets/
investors. low credit rating)
Lead Manager/ Joint Lead Arranges and manages the Investec Bank plc & Numis
Managers issue of debt securities. They Securities Limited.
find the investors and raise No co-managers here.
interest in the bond through
roadshows. They also
underwrite the issue (they
promise to buy them if the
bonds aren’t all bought). The
co-managers have their own
agreement and do the same
things.
Principal Paying Agent/ Paying An agent of the issuer Elavon Financial Services
Agent responsible for co-ordinating Limited
payments of principal and
interest under the bond. You
have to have them if you have
a trustee but not if you have a
fiscal agent who can carry this
out.
Fiscal Agent agent of the issuer and not the None
bondholders: responsible for
paying principal and interest to
the bondholders. Appointed
by the issuer. They have no
duty of care to the
bondholders.
Trustee represents the interests of the U.S. Bank Trustees Limited
bondholders. Holds property
on trust (the issuer’s covenant
to pay the bondholders).
1
Banking & Debt Finance Prep & Workshop Notes
Workshop 1: Intro to Debt Securities
Bonds: essentially an IOU; it is a promise to repay (or pay) money to an investor usually with
interest.
Prep Task 1: Parties in Bond Issue
Party Explanation of Role Entity Performing Role for
Unite Group PLC
Issuer The entity that is raising the Unite Group plc
debt finance. The borrower.
Guarantor The entity guaranteeing that None. (usually have guarantor
the borrower will pay back if you don’t have many assets/
investors. low credit rating)
Lead Manager/ Joint Lead Arranges and manages the Investec Bank plc & Numis
Managers issue of debt securities. They Securities Limited.
find the investors and raise No co-managers here.
interest in the bond through
roadshows. They also
underwrite the issue (they
promise to buy them if the
bonds aren’t all bought). The
co-managers have their own
agreement and do the same
things.
Principal Paying Agent/ Paying An agent of the issuer Elavon Financial Services
Agent responsible for co-ordinating Limited
payments of principal and
interest under the bond. You
have to have them if you have
a trustee but not if you have a
fiscal agent who can carry this
out.
Fiscal Agent agent of the issuer and not the None
bondholders: responsible for
paying principal and interest to
the bondholders. Appointed
by the issuer. They have no
duty of care to the
bondholders.
Trustee represents the interests of the U.S. Bank Trustees Limited
bondholders. Holds property
on trust (the issuer’s covenant
to pay the bondholders).
1
