Debt Issuance & Management

Paying Agent Services

A missed or late debt payment can result in costly consequences for public debt issuers. In addition, recent changes to the Depository Trust Company’s (DTC) bond issuer payment submission requirements make the process far more complex. We recommend engaging a paying agent as a smart, simple way to reduce your risk of late or missed payments.

What is a Paying Agent?

Paying agents help securities issuers manage their debt payment obligations. When you engage a registered paying agent, they will:

  • Serve as the physical custodian of your bonds.
  • Maintain records of the debt obligations for which they are contracted.
  • Notify you well in advance of payment due dates.
  • Collect amount due and submit payment to the DTC on your behalf.
  • Troubleshoot directly with the DTC whenever needed.
  • Coordinate with your auditors to ensure accuracy of audit verifications.
  • Complete Internal Revenue Service filings for direct-pay programs, as needed.

Your paying agent also handles administrative tasks, such as processing required redemption notices for term bonds and optional redemption notices for full or partial bond calls.

Is it Important to Retain One?

Yes! Engaging a qualified paying agent, such as Ehlers, is a cost-effective way to ensure:

  • Accurate & timely payments: Missed or late debt payments are reportable events under SEC Rule 15c2-12 and must be publicly disclosed via EMMA and future official statements. Any lapse can negatively impact your rating and increase your future cost of borrowing.
  • Continuity: Staffdepartures or loss of institutional knowledge can put you at risk for missed or late payments.
  • Advocacy & Representation: When discrepancies or other problems arise, Ehlers will advocate on your behalf, working directly with the DTC to resolve any issues quickly.

Can Ehlers Help?

Absolutely. Ehlers provides paying agent services to over 625 issuers. We are a member of DTCs Fast Automated Securities Transfer program, which eliminates the need to physically transfer securities by empowering us to serve as custodian for DTC while working on your behalf. Our services include:

  • Paying Agent
  • Upcoming Payment Reminders
  • Registrar
  • Call Notice/Redemption Filing
  • Fiscal Agent
  • Mandatory Term Bond Redemption Notifications

Bottom Line?

A missed or late debt payment is a costly mistake that can result in long-term consequences. Let Ehlers help you avoid that.

Meet Our Paying Agent Services Team