When I read this Mayer Brown alert — focused on debt reopenings — that shares background info about CUSIPs, I was surprised that I’d either forgotten or never learned some of the basics. We all know the term. We know that CUSIPs are codes used in the US and Canada to identify securities. Here are some things that you may or may not know (or remember if it’s been a while since you’ve dealt directly with obtaining CUSIPs).

CUSIP stands for “Committee on Uniform Security Identification Procedures.”

A CUSIP consists of nine digits; the first six digits identify the issuer and are assigned to issuers in alphabetic sequence (also known as the base or CUSIP-6), and the next two characters (alphabetic or numeric) identify the issue. The ninth digit is a check digit to ensure the CUSIP’s accuracy.

CUSIP Global Services (CGS), which assigns CUSIPs, is managed on behalf of the American Bankers Association by S&P Global Market Intelligence, a division of S&P Global.

Certain corporate actions — like a debt reopening or an A-B exchange offer — require a temporary or contra CUSIP used to identify and segregate tendered from un-tendered securities.

Obviously, offering a new class of securities requires a new CUSIP number. But other corporate actions — like a stock split or name change — may require a new CUSIP. My understanding is that they can be obtained relatively quickly, but that DTC’s approval process to declare a CUSIP as “eligible” on its system may not be. Plus, certain advance notice requirements may require the new CUSIP, so advance planning is key.

Are there other terms, tools, industry players we use or reference all the time but may have forgotten these sorts of details about? Terms associates hear thrown around but may not fully appreciate? Perhaps a series of “getting to know X” blogs are in order. If you have any suggestions, please reach out at mervine@ccrcorp.com.

– Meredith Ervine