Corporate Debt Securities in U.S. Capital Markets

Summary

The U.S. debt capital markets are an important source of capital for companies that borrow money to finance their businesses. Companies borrow money for a variety of reasons, from financing day-to-day operations and managing seasonal fluctuations in working capital, to funding acquisitions or paying dividends. Most companies obtain debt through loans from banks and other institutional lenders market or by issuing debt securities in the capital markets. This practice note provides a high-level introduction to debt securities commonly issued by companies in the U.S. debt capital markets and discusses the offering process and key characteristics of different types of transactions. Counsel should be aware that there are a significant number of other legal terms and issues relevant to issuers, underwriters, and investors that are outside the scope of this note. In addition, different transactions may give rise to different issues based on the facts and circumstances at hand.