SEC Proposes Changes to Simplify and Streamline Financial Disclosure Requirements in Certain Registered Debt Offerings
On July 24, 2018, the Securities and Exchange Commission proposed amendments to Rules 3-10 and 3-16 of Regulation S-X designed to simplify and streamline the financial disclosure requirements applicable to subsidiary guarantors and issuers of registered debt securities, as well as for affiliates whose securities are pledged in favor of holders of a registrant’s debt securities. The proposed amendments are intended to make these disclosures easier for investors to understand while reducing the compliance burden for registrants, which the SEC hopes will encourage additional registered debt offerings. Following a 60-day comment period, the SEC intends to publish final rules.