Corporate Practice Series Portfolio No. 58-3rd, Regulation S: The Safe Harbor for Offshore Securities Transactions, analyzes the exemptions provided by Regulation S from the registration and prospectus delivery requirements of Section 5 of the Securities Act of 1933. Regulation S codified the SEC's long-standing interpretive position that the registration requirements of the 1933 Act were for the benefit of U.S. investors, and that registration was not required for offers and sales made outside the United States in circumstances in which it is reasonably likely that the securities will come to rest outside the United States.

Portfolio 58-3rd: Regulation S: The Safe Harbor for Offshore Securities Transactions

I. Introduction; The Need for Regulation S

II. Summary of Regulation S
    . Introductory Material
    A. Preliminary Notes
    B. The General Statement
    C. Definitions
    D. Safe Harbors
         1. General conditions
              a. Offshore transactions
              b. No directed selling efforts in the United States
                   (i). Activities
                   (ii). Advertisements
                   (iii). Press conferences
         2. Primary offering safe harbors 53
              a. Category One
              b. Category Two
              c. Category Three
         3. Equity securities
              a. Category One safe harbor for equity
              b. Category Two safe harbor for equity
              c. Category Three safe harbor for equity
         4. Debt securities
              a. Category One safe harbor for debt
              b. Category Two safe harbor for debt
              c. Category Three safe harbor for debt
         5. Guaranteed securities
         6. Resale safe harbor
         7. Abusive practices and resale limitations
         8. Safe harbor protections
         9. Reporting of Regulation S sales
    
III. Practical Application of Regulation S
    . Introductory Material
    A. Prior Procedures for Debt Securities 4
    B. Prior Procedures for Equity Securities 9
    C. Convertible Securities
    D. Options
    E. Flow-Back Registration Statements
    F. Employee Stock Plans
    G. Private Placements and Offshore Offerings (Interaction of Regulation S and Rule 144A)
    H. American Depositary Receipts
    I. Acquisitions
    J. Issues Raised by Non-U.S. Exchanges and Trading Systems
    K. Interaction with Tax Regulations
         1. TEFRA D restrictions on offers and sales
         2. TEFRA D restrictions on delivery
         3. TEFRA D certification requirements
 

Portfolio 58-3rd: Regulation S: The Safe Harbor for Offshore Securities Transactions

Wks. 1 Regulation S: Rules Governing Offers and Sales Made Outside the United States Without Registration Under the Securities Act of 1933 (17 C.F.R. §§230.901-230.905)

Wks. 2 Rule 144A: Private Resales of Securities to Institutions (17 C.F.R. §230.144A)

Wks. 3 Regulation S-K, Item 701: Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities (17 C.F.R. §229.701)

Wks. 4 Release No. 34-37801, 61 Fed. Reg. 54,506 (Oct. 10, 1996) Periodic Reporting of Unregistered Equity Sales

Wks. 5 Example of the Reporting of Sales of Unregistered Securities in Form 10-K

Wks. 6 Release No. 33-4708, 29 Fed. Reg. 9,828 (July 9, 1964) Registration of Foreign Offerings by Domestic Issuers; Registration of Underwriters of Foreign Offerings as Broker-Dealers

Wks. 7 Release No. 33-6779, 53 Fed. Reg. 22,661 (June 17, 1988) First Regulation S Proposal

Wks. 8 Release No. 33-6838, 54 Fed. Reg. 30,063 (July 11, 1989) Regulation S Reproposal

Wks. 9 Release No. 33-6863, 55 Fed. Reg. 18,306 (April 24, 1990) 1990 Adopting Release

Wks. 10 Release No. 33-7190, 60 Fed. Reg. 35,663 (June 27, 1995) Problematic Practices Interpretive Release

Wks. 11 Release No. 33-7392, 62 Fed. Reg. 9,258 (Feb. 20, 1997) Regulation S Amendments Proposal

Wks. 12 Release No. 33-7505, 63 Fed. Reg. 9,632 (Feb. 17, 1998) Regulation S Amendments Adopting Release

Wks. 13 Release No. 33–6862, 55 Fed. Reg. 17,933 (April 23, 1990) SEC Release Adopting Rule 144A

Wks. 14 SEC No-Action Letter re: Depositary Receipts April 14, 1993

Wks. 15 Provisions Typically Used in Underwriting or Purchase Agreements

Wks. 16 Investor Representation Letter: Qualified Institutional Buyer

Wks. 17 Investor Representation Letter: Institutional Accredited Investor

Wks. 18 Representation Letter of Non-U.S. Purchaser

Wks. 19 Transferee Letter of Representation

Wks. 20 Typical Language for the Offering Memorandum

Wks. 21 Sample Resale Agreement

Wks. 22 Sample Resale Legal Opinion

Wks. 23 Sample Block Trade Letterf

Sara Hanks
Clifford Chance LLP
New York, New York