The SEC recently provided no-action relief for five-day tender offers. The new no-action letter eases requirements in the following areas:

• The tender offer must be open for five business days rather than a seven to ten calendar day period under existing no-action relief.
• The relief allows for exchange offers that meet defined parameters.
• The no-action letter eliminates the distinction between investment grade and non-investment grade securities.

Among other things, the relief is not available where an issuer seeks to solicit exit consents to modify the terms of an indenture to strip covenants.