Medium-Term Note (MTN) Program Establishment, Updates, and Takedowns

Summary

This practice note discusses the steps and the participants involved in establishing, updating, and selling securities under a medium-term note (MTN) program registered with the Securities and Exchange Commission (SEC) under the Securities Act of 1933, as amended (Securities Act). Registered MTN programs are most often established by large public companies, typically well-known seasoned issuers (WKSIs), to periodically raise capital through sales of debt securities. Upon establishment of the program, the MTN issuer can offer and sell a wide range of debt securities in varying amounts and maturities (each such issuance a "takedown") on a continuous or episodic basis, without the need to recommence the registration process or to conduct a fully documented closing for each issuance. Although MTNs typically have maturities of between two and five years, medium-term maturities are not required, and programs commonly provide for issuances of short- and long- term securities.