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What is the Notice of Sale?

Written by Debtbook Team | Nov 7, 2022 11:52:19 AM

 

Borrowers publish a notice of sale in industry newsletters, such as the Daily Bond Buyer, and via other outlets such as EMMA, and their own websites. A notice of sale informs potential buyers that a competitive transaction is coming to market. 

This allows the potential investor to conduct research on the security prior to making a purchase decision. The Notice of Sale includes, but is not limited to:

  • Date, time, and methodology of submitting bids
  • Purpose of issuance
  • Security of bonds to be sold
  • Taxability of bonds
  • Total issue amount and maturity schedule of bonds
  • Bond counsel name
  • Delivery time, place, and method
  • How the winning bid will be selected

What’s important here?

In order to inform the public that a competitive bond issue is going to be sold, the borrower publishes the relevant information needed to analyze the bond issuance in a nationally recognized newspaper or other sources.