Best-efforts deal: Difference between revisions
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imported>Doug Williamson (Expand for securities issuance.) |
imported>Doug Williamson (Make context explicit.) |
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1. ''Loans''. | 1. ''Loans''. | ||
In the context of loans, a best efforts deal is a syndicated loan, in which the arrangers commit to only part of the total amount required, and undertake to do their best to find other lenders to join the [[syndicate]], for the remainder of the total amount required by the borrower. | |||
2. ''Securities issuance''. | 2. ''Securities issuance''. | ||
In relation to an issue of securities, an arrangement in which an agent sells securities on behalf of the issuer, but does not guarantee the amount of capital it will raise. | In relation to an issue of securities, a best efforts deal is an arrangement in which an agent sells securities on behalf of the issuer, but does not guarantee the amount of capital that it will raise. | ||
Latest revision as of 09:23, 9 January 2019
1. Loans.
In the context of loans, a best efforts deal is a syndicated loan, in which the arrangers commit to only part of the total amount required, and undertake to do their best to find other lenders to join the syndicate, for the remainder of the total amount required by the borrower.
2. Securities issuance.
In relation to an issue of securities, a best efforts deal is an arrangement in which an agent sells securities on behalf of the issuer, but does not guarantee the amount of capital that it will raise.
