Final US Regulations Clarify When Property Is Deemed Publicly Traded for Purposes of Determining the Issue Price of a Debt Instrument

September 21, 2012
The Internal Revenue Service has issued final regulations clarifying when property will be considered publicly traded for purposes of determining the issue price of a debt instrument. The new expanded definition of publicly traded property increases the likelihood that a debt-for-debt exchange (including a significant amendment to an existing debt instrument) will result in a reduced issue price for the new debt. This update explains the new regulations.