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.
March 2019
