The change in detention times under Rule 144 has affected the date of provisions for waste management systems. Prior to the 2008 amendments, it was not uncommon for private equity sponsorship transactions to provide for a reduction in bonds that become freely tradable under Rule 144. A simple case of deviation on bonds that become freely tradable became less widespread after the 2008 amendments. Only a handful of agreements in the sample provided for such a decrease, and almost all of them had a relatively short filing period of 180 days or 270 days within the reduced detention period provided for by Rule 144. The most common wording in the sample was for a decrease on the second anniversary of the closure, which would keep the case away after the previous period of detention under Rule 144. A handful of agreements provided that the bonds would later become freely tradable and that a given date would be between 545 days and 2 years after closing. In February 2008, the SEC passed a number of amendments to Rule 144 of the Securities Act, which reduced the time it takes to with you to with non-registered or “restricted” securities. At the time of the 2008 amendments, some commentators predicted that investors would no longer need A/B market offers on securities sold under Rule 144A and indicated that the new holding periods under revised Rule 144 were shorter than the registration periods included in many registration rights agreements. A task force convened by the Securities Industry and Financial Markets Association (SIFMA) proposed an alternative to traditional registration fees which, instead of requiring an A/B exchange offer, would require the removal of the restrictive legend of securities after the expiry of the holding period under Rule 144.3 The registration regime for high-yield loans has remained remarkably stable thanks to a multitude of economic cycles and a liberalisation of securities legislation. For high-yield issuers, the price of admission to the high-rate marker continues to offer liquidity through registration fees, with an incentive to deliver registered securities within a limited time of issue. In agreements with a notification period, the delay was between 45 and 420 days after the issue, with 180 days being the most frequent. In agreements with an efficiency period, the delay was between 150 and 510 days after the issue, with 270 and 365 days being the most frequent. The deadlines for the conclusion of an A/B exchange offer were between 180 and 450 days after the issue, the most common being 360, 365 or 395 days.
Longer completion times are usually found in agreements without further deadlines and agreements with efficiency and completion time, but without notification delay.