Shumaker Manufacturing

A Legal & Industry Review

Client Alert: Issue Price Regulations

Final issue price regulations (“Final Regulations”) were published in the Federal Register on December 9, 2016. The definition of “issue price” applies to bonds sold on or after June 7, 2017.

Prior Regulations. Previously, Treasury Regulations §148-1(b) defined issue price to be as determined under §§1273 and 1274, the original issue discount and debt-for-property rules of the Internal Revenue Code of 1986, as amended (the “Code”). Treasury Regulation §148-1(b) went on to state that, generally, for publicly offered bonds, the issue price was the first price at which a substantial amount of the bonds was sold to the public. A “substantial amount” was specified to be 10%. The public did not include bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers.

Follow the link to read more of our Client Alert: Issue Price Regulations authored by Sheila Kles, partner at Shumaker, Loop & Kendrick, LLP.





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