The proposal would make changes to Rule 3-10 and Rule 3-16 to reduce instances where companies have to file audited statements for affiliates when those affiliates’ stocks are pledged as collateral for a debt offering.

“We believe that an overwhelming number of issuers choose to issue their guaranteed and/or collateralized securities in Rule 144A ‘for life’ offerings to avoid the disclosure requirements under Rule 3-10 and Rule 3-16, despite the fact that conducting a registered offering would result in a broader base of potential investors and could lower the cost of capital,” wrote Maya McReynolds, senior vice president of corporate finance and chief accounting officer at Dell Technologies, Inc.

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