The Firm’s tax department is active in the development of financial transactions, from simple stock or debt financings to complex multi-security debt-equity hybrids or innovative securitizations. The Firm’s tax lawyers regularly assist bankers and corporate clients alike in structuring sophisticated transactions that optimize tax and other business considerations. Many of the innovations developed by the tax attorneys at Simpson Thacher have become standard in the marketplace.
The Firm has been actively involved in developing hybrid securities and structuring derivatives. Some are analyzed as forward purchase contracts or take the form of swaps or a combination of puts and calls. Others take the form of debt instruments subject to the contingent payment debt regulations. The ultimate structure may vary depending on issuer and investor considerations and Simpson Thacher attorneys work side-by-side with these parties to develop the most optimal product solution.
The ever-changing marketplace and demands of investors continually result in new innovative structures that are of first impression. The recent changes to the securities law have created more regulations around issuances of debt and equity and execution of derivatives. Moreover, cross-border trades have become more popular as international dealers have become available. These changes have increased the need for the Firm’s lawyers to create new structures or enhance others.