The Tax Cuts and Jobs Act enacted at the end of 2017 has impacted businesses and individuals and alike. After its passage, the LSTA hosted Latham & Watkins for a webcast on the projected impact of tax reform on financings. While predictions could be made then, much of the detail was left to implementing guidance and was then unknown. Last week, roughly 18 months later, Jiyeon Lee- Lim, Elena Romanova and Jane Summers, partners at Latham & Watkins, returned to give an update now that some of those details have been filled in.
Revisiting Impact of Tax Reform on the Loan Market Webcast Replay. This replay will be available until June 13, 2020
Revisiting the Impact of Tax Reform on the Loan Market presented on June 13, 2019 introduced by Tess Virmani, Associate General Counsel & SVP, Public Policy of the LSTA and presented by Jiyeon Lee-Lim, Partner, Elena Romanova, Partner, Jane Summers, Partner all at Latham & Watkins.
Since the tax reform was signed into law last December, LSTA members have wondered what it means for the loan market (and for themselves). We have begun to answer at least part of the first question. On Thursday, January 30, 2018, Jiyeon Lee-Lim, Elena Romanova and Jane Summers, partners at Latham & Watkins, laid bare the new tax rules generated by the Tax Cuts and Jobs Act. While the Act includes important changes impacting businesses and individuals, the panelists highlighted those new tax rules particularly relevant for financings.
This week we cover Loans & Taxes, Secondary Trading Stats and 20 Years in Loans
White Paper on Tax Reform written by Latham
As the tax reform process grinds on in Washington, Wall Street – and Main Street – are examining how it affects both individuals and companies. (Spoiler: There appear to be winners and losers on both streets.) This week, Moody’s published their third installment of “Debt and Taxes”, which discussed how the tax reform bill could affect different types of companies. We discuss their analysis – and companies’ reaction to the bill – below.
On November 9th, a week after the House released its tax reform bill, the Senate released its bill. To be sure, getting any bills through Congress has been challenging this year. But if tax reform as proposed passed – and Gary Cohn on Tuesday reiterated that it would – it could dramatically impact the U.S. tax system and tax payers. Replacing our homeowner hat with our LSTA hat, we spent some time pondering the impact of the tax bills on the corporate loan sector – and the LBO subsector in particular. We focus on the intersection of interest deductibility, lower corporate taxes and expensing of capex. While this is far from simple, we fortunately got some help along the way from Barclays, CreditSights, Moody’s, Akin Gump and Debevoise.
The next few weeks may be chockablock with regulatory goings-on that potentially affect the loan market. We provide a watchlist below, a recent presentation (attached) and will analyze each issue as details emerge.
This is presentation was done by Meredith Coffey, LSTA EVP at the IACPM – 2017 Annual Conference
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