144A is used for both debt and equity offerings. Rule 144A allows a company to raise an unlimited amount of capital from investors that qualify, normally those with a net worth of $100 million in excess. In addition, on US investors (citizens) can invest in a 144a offering. The most common method of raising under the rule of 144a is via debt securities. When deciding which rule to raise capital under and for which type of structure, choosing the proper 144A method is paramount.
144A Debt vs. Equity
Equity offerings under rule 144A follow similar strictures and structures as debt offerings. As opposed to bond offering or note issues under 144A, an equity transaction gives the investor an ownership stake in the company. This investor must be a QIB, a qualified institutional buyer. So too for note and bond issuances. The investor must be a QIB, and a US citizen in order to invest in the securities.
The most common 144A transaction that ISIN.com works on are in the debt sphere, namely for note issuance and bond offerings. 144A bond offerings are considered by many to to be the fastest way to raise debt capital for the most amount of investment. 144A notes or bonds are a popular raise to debt capital.
What goes for 144A in the debt sphere is also true for the Reg S world. Under Regulation S, which is a non US offering, or for non-US citizens, companies issue debt and raise, like the 144a, large amounts of capital in the least amount of time (it is hoped of course). Combining a 144A and Reg S, or 144A/Reg S as its common referred to, is popular and can help raise needed money. ISIN.com can assist with your entire Reg S/144A offerings.
Identifier Numbers – ISIN/CUSIP
Whether your company is raising capital via an equity offering, or selling notes/bonds for a debt issuance a typical must have is the securities identifiers like the ISIN or CUSIP number. The ISIN code is a more universal code while the CUSIP is more for US/Canada offerings. However, both are the standard for 144A and Reg S offerings.
Our staff can assist you with your 144a and Reg S offerings from start to finish. From the document preparation to the ISIN or CUSIP.