Material Non-Public Information in the U.S. Syndicated Loan Market

Material non-public information (MNPI) plays a critical role in the U.S. syndicated loan market, creating both compliance challenges and legal risks for loan market participants (LMPs). In this program, Robert Scheininger and Andrew J. Callahan of Dentons explore the legal framework surrounding MNPI, including insider trading laws, SEC enforcement actions, and the Loan Syndications and Trading Association (LSTA) guidance. They also discuss the distinction between public and private-side participants, best practices for handling MNPI, and the importance of robust compliance policies. By understanding these issues, attorneys and compliance professionals can mitigate risks and ensure regulatory adherence in loan market transactions.

Learning Objectives:

1. Identify the key legal principles governing MNPI in the U.S. syndicated loan market
2. Analyze the distinction between public-side and private-side participants and the implications for loan market compliance
3. Evaluate recent SEC enforcement actions related to MNPI and their impact on market participants
4. Explore the role of the LSTA and its guidance on handling confidential information in syndicated loan transactions
5. Develop best practices for implementing policies and procedures to mitigate the risks associated with MNPI