Amending Master Indenture to meet client’s need for flexibility
Our senior living client wanted flexibility for an important new venture to provide additional services to the elderly, which meant amending certain financial covenant in the existing master trust indenture related to approximately $130,000,000 in outstanding bonds. The amendments required the consent of at least a majority of all the holders who had to be contacted through the Depository Trust Company procedures. Issuers seldom undertake this type of project because of the difficulties in obtaining bondholder consent, but the new venture was of the highest importance to the client and we were asked to move forward. It took over eight months to draft the amendment and the solicitation materials, work on the tax implications and assist with advice on the DTC solicitation process while the holders were being contacted. In the end, we were able to help the client to be in position to put their new business venture into place.