MOVING THE HOLY GRAIL FROM PRIVATE EQUITY TO HEDGE FUNDS
SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST
SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST
CORPORATE DEBT INSTRUMENTS : THINKING HEDGE FUNDS & OTHERS : RAISING CAPITAL BC LAW
SECURITY ISSUES EXEMPT FROM REGISTRATION WITH SECURITY COMMISSIONS : SUMMARIES REGARDING HEDGE FUND EXEMPTIONS
SEARCHING FOR SOPHISTICATED PRIVATE PLACEMENTS
SECURITY ISSUES EXEMPT FROM REGISTRATION WITH SECURITY COMMISSIONS : SUMMARIES REGARDING HEDGE FUND EXEMPTIONS
SEARCHING FOR SOPHISTICATED PRIVATE PLACEMENTS
"Reserve based lending (RBL) is a
type of financing where a loan is secured by the
undeveloped reserves of oil and gas of a borrower. The
facility is repaid using the proceeds that derive from sales in the field or
portfolio of fields in production. PRACTICAL LAW : A type of asset-based lending (ABL)
commonly used in the oil and gas sector, reserve based loans are made against,
and secured by, an oil and gas field or a portfolio of undeveloped or developed
and producing oil and gas assets. The amount of the loan facility available to
the borrower is based on the value of the borrower's oil and gas reserves, as
adjusted from time to time. The loan facility is repaid using the proceeds from
sales in the field or portfolio."
A debt instrument is a tool an entity can utilize to raise capital. It is a documented, binding obligation that provides funds to an entity in return for a promise from the entity to repay a lender or investor in accordance with terms of a contract. Debt instrument contracts include detailed provisions on the deal such as collateral involved, the rate of interest, the schedule for interest payments, and the timeframe to maturity if applicable.
The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.
Issuing bonds is one way for companies to raise money. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a certain amount of money for a specific period of time. In exchange, the investor receives periodic interest payments. When the bond reaches its maturity date, the company repays the investor. The decision to issue bonds instead of selecting other methods of raising money can be driven by many factors. Comparing the features and benefits of bonds versus other common methods of raising cash provides some insight. It helps to explain why companies often issue bonds when they need to finance corporate activities.
KEY TAKEAWAYS
- When companies want to raise capital, they can issue stocks or bonds.
- Bond financing is often less expensive than equity and does not entail giving up any control of the company.
- A company can obtain debt financing from a bank in the form of a loan, or else issue bonds to investors.
- Bonds have several advantages over bank loans and can be structured in many ways with different maturities.
ALBERTA : Business Corporations Act : “security” means a share of any class or series of shares or a debt obligation of a corporation and includes a certificate evidencing such a share or debt obligation;”
BRITISH COLUMBIA : “ Payment of consideration for shares
Money payable by a shareholder to the company under the memorandum or articles is a debt due from the shareholder to the company as if it were a debt due or acknowledged to be due by instrument under seal
For the purposes of this section, any dividend, profit or other amount that is due to a shareholder as a result of that person being a shareholder may be taken into account for the purpose of the final adjustment of the rights of the shareholders among themselves, but that sum ranks behind a debt owed to a person that is not due to that person by reason of that person being a shareholder. Payment of consideration for shares
64 (1) In this section, "property" does not include
(a) money, or
(b) a record evidencing indebtedness of the person to whom shares are to be issued.
SINCE TIME BEGAN : salus populi suprema est lex - the right of the people is the supreme law : IN TRUTH WE TRUST
