Chandler MHM


Addition of Collateral to Unsecured Debentures After Issuance

Unsecured debentures are common debt instruments for companies to raise funds without the provision of collateral, typically relying on the credit rating of an issuer or the issuer’s general creditworthiness. However, there may be circumstances where the issuer seeks to enhance the security of these instruments by adding collateral post-issuance in order to provide further assurance to investors or increasing liquidity in the secondary market.