Clearstream, BondCom seek improved tender/restructuring issuer communications with investors

New York, May 6 - Clearstream Banking and Bondholder Communications Group outlined plans Thursday to work together to make communications between issuers of debt securities doing tender offers and other complex transactions and their investors faster, more comprehensive and less expensive.

The companies plan to do this by making greater use of the internet and other electronic methods of communication for such corporate initiatives as tenders, exchange offers, consent solicitations and restructurings.

They estimate that debt issuers' costs could be reduced by as much as €100,000 per transaction by eliminating physical printing and delivery of paper documents.

BondCom - a global bondholder communications specialist - has formed a new Issuer Services Agency to offer electronic communications to issuers in place of most of the paper documents they have been using up until now. The services will complement Swift messaging formats with additional internet-based communication methods that will enable bondholders to navigate through complex documents and to respond electronically to any required decisions.

BondCom said in a statement that the services it is offering "have already been fully proven in recent restructuring events and now will be launched globally with Clearstream's support."

Clearstream, a Deutsche Börse Group division that provides custody, settlement and clearinghouse services, will support the services with operational and technological resources. Clearstream will work with BondCom and debt issuers to create standardized procedures and IT enhancements aimed at improving efficiency levels and straight-through processing rates.

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