Consent Solicitation

In a consent solicitation, the issuer of a security seeks the consent of holders to amend the terms of the security. Usually, a consent solicitation will be undertaken in the context of a debt securities. An issuer will seek the consent of the holders of its debt securities to amend the terms of the indenture governing the terms of such securities or to waive breaches or defaults. A consent solicitation may often be undertaken in conjunction with a liability management transaction, like an exchange offer, or a broader restructuring.

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