Intertrust Group partners with i2 Capital Market to launch new Consent Solicitation service

Intertrust Group is delighted to announce that its capital markets team, headed by Cliff Pearce, has launched a new consent solicitation capability by partnering with London-based distressed credit and agency specialist i2 Capital Markets (i2 CapMark).

The partnership will enable Intertrust Group, a world leader in providing specialised administration services to clients in over 30 jurisdictions, to provide consent solicitation and restructuring services to their clients. This will not only position the firm’s product suite for appointments post-restructure but also coordinate ad hoc amendments in a deal lifecycle. In addition, Intertrust Group will be able to coordinate Inter Bank Offering Rate (IBOR) amendments as directors of an SPV.

The service will be of use to a broad client set including restructuring and structured finance lawyers as well as administrators of large companies, bank structuring desks and consulting firms on a global basis. It’s also a key service where IBOR repapering is referenced or required in the bond markets.

Under the new partnership, investors will be able to see what amendments of documents are being proposed and use i2 CapMark’s proprietary platform in order to assess and then vote on these changes. i2CapMark have the depth of knowledge and years of experience in all types of amendments and refinancing scenarios.

Usually, where an issuer requests the consent of bondholders to amend the terms of the bonds – i.e. asking permission to change one or more terms in the original deal – amendments are made in accordance with the terms of the bonds by way of bondholder meeting or written resolution.

Cliff Pearce, Global Head of Capital Markets at Intertrust Group, said: “Issuers will need to change some of the covenants or underlying deal terms and will need investor consent to do so. There will be a high volume of these amendments in 2021 due to IBOR or Covid-19, and Intertrust Group in partnership with i2 CapMark will be able to help current and new clients to navigate through these changes in the most efficient way.”

“Together, Intertrust Group’s global profile and i2 CapMark’s expertise, forms a strategic and dynamic alliance that’s highly responsive to today’s challenges in the debt capital markets” said Sanjay Jobanputra, Director of i2 CapMark, commenting on the partnership.

The launch of the consent solicitation and restructuring service complements the support that Intertrust Group offers for the IBOR repapering exercise which is due to phase out at the end of this year. Alternative Reference Rates (ARRs), also known as risk-free rates (RFRs), have been identified as a replacement in most jurisdictions.

To read more on the IBOR repapering exercise click here. If you’d like to find out more on our provision of consent solicitation services, get in touch with our experts.