Accelerated structured bond offering
Also known as an ASBO. A structured bond offering where bonds are issued to fund an acquisition, rather than the acquisition being funded through short-term funding and then a refinancing through a bond offering. For this financing option to work, the seller and the buyer must work together to arrange the financing structure before the sale and purchase agreement for the acquisition is signed. These bonds are considered an alternative to stapled finance ( www.practicallaw.com/4-386-5361) .
For more information on bonds generally, see Practice note, Bond issues: overview ( www.practicallaw.com/4-201-8058) . For more information on acquisition finance, see Practice note, Acquisition finance: debt for buyouts ( www.practicallaw.com/3-107-4036) .