Commercial paper has historically been one of the most cost-effective means for financing the short term needs of large, creditworthy business enterprises. Commercial paper transactions are exempt from SEC registration requirements, and commercial paper trades freely in domestic and international capital markets. Commercial paper cannot have a maturity of more than nine months in order to qualify for the SEC exemptions and often has shorter maturities. With the advent of derivatives and new asset-backed structures, commercial paper programs are now available to finance a variety of businesses and assets. Commercial paper is sold through agents or dealers and is not underwritten by investment banks.Hunton & Williams LLP has long been active in commercial paper transactions. We have represented corporate issuers, U.S. and foreign, in both U.S. dollar and foreign currency denominated commercial paper programs in both the US market and in the Eurodollar and foreign markets. We pioneered industrial development, tax-exempt commercial paper. We have represented asset-backed commercial paper conduit issuers as well as those who obtain the benefits of commercial paper financing through them. Our representations have often included the use of derivatives to match funding needs with funding sources.
