Financing Briefing - US Private Placements for European Issuers01 Apr 2013 | Newsletter/briefing
Recent turmoil in European debt markets has prompted many European companies to consider alternative sources of debt financing. One source of funding which is proving increasingly attractive to European corporate treasurers is the USPP market, where US insurance companies, pension funds and other investors have for several decades made debt financing available to US and non-US companies.
Lending to European borrowers in the USPP market has increased dramatically in recent years and now represents a sizeable proportion of the overall market. In 2011, UK borrowers alone accounted for 20% of total USPP borrowings, with other European borrowers making up a further 17%.
This briefing contains an overview of the USPP market and highlights some of the differences between the USPP product and more traditional loan and eurobond financing which may assist European corporate treasurers who wish to gain a better understanding of what a USPP issue may involve.
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