Reopenings: Issuing Additional Debt Securities of an Outstanding Series TYPE: Third-party Publication

This practice note discusses reopenings of debt securities issuances. Companies frequently raise capital by issuing additional debt securities of the same series as debt securities outstanding under an existing indenture, often referred to as “reopening the indenture” or “reopening the series.” In reopenings, the newly issued additional debt securities will have the same terms, and for all purposes under the indenture will be treated as part of the same series, as the outstanding debt securities of such series. The additional debt securities will also be fungible with the outstanding debt securities of such series for secondary market trading. This practice note discusses the reasons why companies raise capital through reopenings, as well as the processes, mechanics, tax considerations, and disclosure issues specific to reopenings.