CMi2i, the forensic capital markets intelligence firm, today announced an end-to-end solution that will assist issuers in the transition away from (L)IBOR to a new reference rate, as is required of issuers by the end of 2021.

The CMi2i solution addresses a critical step in the process of transitioning: the agreeing of a new rate by Bondholders via an EGM.  Without this consent-solicitation exercise, issuers are vulnerable to risks ranging from litigation to activism.

(L)IBOR underpins contracts affecting banks, asset managers, insurers and corporates estimated at $350 trillion globally. This figure underscores the extent to which market participants rely on (L)IBOR and demonstrates that a disorderly discontinuation of the rate could give rise to systemic disruption. Against this background, many market participants have already embarked on transition programmes, but as regulators have pointed out, the pace of transition is not yet fast enough.

Boards have been urged to act now, not only to avoid reputational, legal and commercial risk later, but because of the impending (L)IBOR Bottleneck—the term used to describe the strain on market resources ranging from lawyers to advisors to proxy solicitation services as the clock ticks closer to the deadline.

CMi2i is the world-leader in Shareholder and Debtholder identification services. For (L)IBOR, CMi2i is offering an end-to-end solution that will provide issuers with the optimal way to achieve consent for the required transition.  CMi2i will firstly identify Bondholders using their unique and highly accurate methodology that will meet the test of ‘Best Endeavours’ before engaging in direct information distribution, voter mobilisation and proxy solicitation. CMi2i also provides an initial risk assessment that will indicate whether the new rate is likely to be passed or not, allowing organisations to plan accordingly.

This detailed and thorough approach gives issuers the best chance of passing the rate and mitigating the litany of risks that are likely ensue without performing a consent-solicitation exercise. CMi2i’s years of experience in Shareholder and Bondholder identification, and reliable methodology, makes the firm uniquely positioned to help issuers succeed in transitioning successfully.

The (L)IBOR transition is the most daunting challenge the capital markets have seen. The amount of work involved in a smooth transition cannot be underestimated. Consent solicitation is considered the safest and complete option for transitioning available to an issuer, but it must be executed with care by an experienced provider that is able to accurately identify and truly mobilise Bondholders.

For more information on CMi2i’s (L)IBOR Transition Solutions or other capital markets intelligence services, please contact sales@cmi2i.com.

About CMi2i

CMi2i is a leader in capital markets intelligence, specialising in the world’s most accurate Equity & Debtholder identification service. CMi2i supports issuers and their advisors with investor relations, M&A, shareholder activism, capital restructuring and reputation management goals. The company has supported more than 1000 corporate transactions, and has over 500 clients worldwide.