Debt Capital and Debt Equity Markets

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Bond Trustee and Security Agent Services

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Pacific Trustees has vast expertise and experience in providing Bond Trustee, Security Agent and Administrative services to the Debt Capital and Debt Equity markets as well as other financial markets. We are typically appointed as an independent Security Agent and Security Trustee to avoid litigation arising from Bonds and other transactions involving bilateral and syndicated loans as well as other types of loans involving Arrangers, Borrowers and Lenders.

 

We also provide independent Trustee and Security Agent services for complex amendment, restructuring and enforcement processes. We have acted in respect of a broad range of Asset-Backed Securitisation (ABS) involving different asset classes, including plain vanilla ABS, asset finance, repacks, distressed assets, high-yield bonds, project finance securitisations, collateral loan obligations, non-performing loans, rental receivables for malls and offices, as well as automobile hire-purchase loans.

 

The role of a Bond Trustee and Security Trustee/Agent primarily includes:

 

1. Constantly monitoring industry and market developments in the Private Debt Securities (PDS) business to keep up with regulatory changes as well as market specific practices.

2. Proactively involving and participating in pre-issuance documentation meetings by providing proper and correct feedback and comments to the parties involved.

3. Continually developing and enhancing systems (both operationally and information technology-related) and fortifying human resource management and planning to meet modern stringent regulatory and legal requirements.

4. Engaging in and providing positive feedback to regulators and industry players/participants to enhance existing Bond structures.

5. Persistently engaging Issuers to ensure proper monitoring of compliance with covenants, terms and conditions of the Trust Deed.

6. Providing or facilitating obtaining “win-win” solutions for both Issuers and Holders for non-compliance, breach or event of default conditions.

7. Ensuring that all securities to be held by the Security Trustee are perfected at the time and in the manner prescribed in the relevant PDS structures.

 

​​Our services include:

• Representing and protecting the interest and rights of Bondholders in accordance with the Trust Deed

• Notifying Bondholders of the occurrence of any trigger event(s) and/or event of defaults as soon as the Trustee becomes aware of such event(s) occurring.

• Upon proper Bondholders’ instructions and indemnification, taking such steps and/or instituting such proceedings to enforce the security for the bonds/notes and to enforce repayment of the bonds/notes and payment of interest.

• Ensuring that the requisite administration and monitoring functions are carried out in a professional manner as required by the transaction documents.

• Acting as the focal point for relationships between Bondholders and Issuers.

• Convening Bondholders’ meetings as and when appropriate.

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In addition, a Bond Trustee usually has the following independent powers and discretions:

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1. agreeing to minor amendments and waiving technical breaches; and

2. certain events of default do not trigger acceleration of the debt securities unless the Bond Trustee has certified that the events are, in its opinion, materially prejudicial to the interests of the Holders of the securities.