Brazilian LTN’s seem to be all the rage these days and there are buyers who will pay for them aplenty. The current rate being offered is $300M per LTN.
The LTN’s buyers are interested in need to be H series. They must be placed onto DTC and Bloomberg with a bank of standing behind them. They must be owned (title holder must be clear) and not leased. For further details email admin@skrbank.com
Here below are standard procedures for such an LTN sale:
1. Seller submits a CIS, Passport, Non Solicitation Declaration, Corporate Resolution, Prospectus and SPE AGREEMENT, along with commercial invoice to be issued to the buyer as agreed.
2. Upon acceptance of delivery of Bloomberg screens TIL submits a signed LOI, CIS, Passport, Non Solicitation Declaration, and Corporate Resolution and Seller completes due diligence, countersigns, and returns the accepted and signed LOI, thus becoming a fully commercial binding and legal purchase contract.
3. Seller will provide full banker’s details including switchboard number, direct dial number, email, and address.
4. All verification with regard to the transaction will take place exclusively by verifiable communication by bank officers in XXXXXXX and Brazil.
5. The Buyer and the Seller agree that is to be a one hundred percent (100%), NAME OF SELLER”S BANKER and Credit Suisse-New York transaction, and that the compliance procedures of both NAME OF SELLER”S BANKER, and Credit Suisse XXXXXX take precedent over any arrangements made by Buyer and Seller to Complete the transaction.
6. The Seller will notify its banker that Credit Suisse XXXXXX banker will contact according to Credit Suisse internal compliance requirements.
7. Seller’s banker confirms its willingness to re-register and deliver in favor of the Buyer (CFT), as Beneficiary in a single transaction in accordance with the DTC free delivery rules.
8. Escrow attorney lodges a pay order with HSBC-XXXXX as a standing bank order to distribute funds upon delivery and receipt of payment from Buyer.
9. Escrow attorney will provide a letter of attestation confirming the lodging of the pay order with HSBC New York to the seller.
10. Upon confirmation of settlement, payment will be made to HSBC-XXXXXXX, to be lodged in the Attorney Trust Account of XXXXX, as attorney for the Seller, as set forth in the Banking Coordinates below. Upon receipt, HSBC-XXXXXX will distribute funds based on standing banking orders to the Seller by electronic transfer or by MT-103, within 24 hours of acceptance subject only to government and banking delays.
11. Seller’s Bank will deliver all hard copies / title of the purchased security directly to Buyer’s Bank Account within Five (5) days after payment for the LTN, if hard copy(s) were issued. If electronic records were issued exclusively, then no hard copies are required to be delivered.