• A group of banks that acts jointly, on a temporary basis, to loan money in a bank credit (syndicated credit) or to underwrite a new issue of bonds.

 Embedded terms in definition
New issue
 Referenced Terms
 Best efforts agreement: An underwriting agreement where the Syndicate agrees to try to sell the issue, but the sale is not guaranteed.

 Bridge loan: Is a type of temporary financing which is extended until permanent financing is secured. At that time, funds from the new permanent financing are used to pay off the bridge loan. Sometimes, investment banks have arranged, if not granted, bridge loans in order to participate in a Syndicate mandated to raise long-term or permanent financing.

 Divided account: Refers to a new issue underwriting whereby each member is responsible to distribute his allocated portion of the deal. After the member sells his portion, his liability ceases with regard to the Syndicate. This compares to an Undivided Account.

 Escape clauses: Provisions in the underwriting agreement that allow the Syndicate to not buy the issue from the organization if specific conditions exist.

 Eurobond: A bond that is (1) underwritten by an international Syndicate, (2) offered at issuance simultaneously to investors in a number of countries, and (3) issued outside the jurisdiction of any single country.Bonds issued in Europe outside the confines of any national capital market. A Eurobond may or may not be denominated in the currency of the issuer.A bond issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. An international bond that is sold primarily in countries other than the country of the currency in which the issue is denominated.

 Related Terms
 Dual syndicate equity offering
Underwriting syndicate

<< Synchronous data Synergistic effect >>

Ways to Cope Financially During and After a Big Change: Here are suggestions for staying focused and avoiding costly decisions during changing times. More...

Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful. - Herman Cain


Copyright 2009-2018 GVC. All rights reserved.