Guinness Mahon Trust Corporation Limited: Security Agent service
PAN, through its subsidiary company Guinness Mahon Trust Corporation Limited, acts as Security Agent or Security Trustee in a variety of financing arrangements including syndicated financings and securitisations based in Europe and the UK.
Under English law, the security agent will typically be a trustee, holding the security for a changing class of beneficiaries. In other jurisdictions (where such trust structures are not always recognised) a parallel debt structure may be used instead, with the security agent acting as lender of record. In either case, the principle objectives are the same, namely to effect distributions to the secured lenders on enforcement, and if required ensure that a single entity is responsible for the administrative aspects of the security. If a creditor assigns or transfers its interest to another entity, that new creditor will benefit from the existing security arrangements without the need for the security to be re-registered or for a new security to be granted.
GM works with the issuer to shape the Security Agents rights and duties to be set out in the relevant security document or, where there are several levels of debt, in an inter-creditor agreement. GM will monitor on an ongoing basis the structures and assets as required by the instrument terms.
For more information on how we can help please contact Stuart Gordon