(Jersey) How to List Securities Issued in Respect of Private Equity Backed Transactions on The International Stock Exchange

The purpose of this article is to provide a high level understanding of Walkers' listing sponsor services in the Channel Islands, together with general information on the listing of securities issued in respect of private equity backed transactions on The International Stock Exchange ("TISE").

Walkers Capital Markets Ltd ("WCML") and TISE deal on a regular basis with a substantial number of enquiries relating to the listing of securities issued in respect of private equity backed transactions on TISE. The majority of these securities are issued in transactions relating to capital investments such as funding acquisitions or restructuring. These securities are issued to private equity houses themselves, management of private equity houses and/or intragroup companies the private equity houses are in control of. These securities can be secured or unsecured and are usually issued under the English law governed loan note documents.

They are listed on TISE as specialist debt securities in order to benefit from the Quoted Eurobond Exemption. Subject to a number of exceptions, a UK tax paying company is obliged to withhold tax from payments of interest. As TISE has been designated as a recognised stock exchange under section 841 of the Income and Corporation Taxes Act, 1988 and section 1005 (1) of the Income Tax Act (2007), qualifying debt securities listed on TISEA are eligible for the Quoted Eurobond Exemption which allows an issuer liable to pay UK tax to make payments of interest on the listed securities gross, without deduction of withholding tax.

 

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