Back Stop


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Back Stop

In an issue of new stock, a guarantee made by an investor, usually an institution, to a publicly-traded company that it will buy the remainder of an issue if the company is unable to place it all with other investors. For example, an institution may announce that it will provide 100% back stop to a company's new issue up to $50 million. If the company only raises $35 million by placing the security with other investors, the institution will buy the remaining $15 million worth of stock.
References in periodicals archive ?
As a condition to an exemption set forth in the regulations under the Israeli Companies Law, the Company's audit committee and board of directors have determined that the participation of EUL in the Rights Offering, including the entry into the Undertaking and the Back Stop Agreement are in the ordinary course of the Company's business, are on market terms, and are for the benefit of the Company.
However, we think it is a grave yard and that the back stop must be moved forward so that the number of animals that are lost because they are being starved is kept to an absolute minimum, " explained NBA chief executive, Robert Forster.
Ms Curnock Cook added: "Personally, I do feel we need to have a different approach on how we provide a back stop, that's an important consideration for the admissions process review, which we are still working on.
Captain Chris Britton deputises in the bowling box, while Mike Rudd strengthens the batting line-up - weakened by the loss of reliable opener Peter King with a hand injury - by playing at back stop.
4 billion back stop facility from JP Morgan in the event of such violation.
He had apparently cracked up under torture on a previous mission but was considered just the man for the ultra-risky Operation Back Stop programme.
Comcast's revolver will serve as liquidity back stop for the Comcast Corporation commercial paper program.
Tenders are invited for Procurement of back stop device for gear box of conveyor belt- qty 2 nos.
Because the rights offering was fully subscribed by the public, MacAndrews & Forbes, Revlon's principal indirect shareholder, was not required to purchase any shares in excess of its pro-rata portion pursuant to its agreement to back stop the rights offering.
387 million construction loan supported by a political risk guarantee expected to be issued by the Export-Import Bank of the United States ("USExim"); $58 million of project letters of credit; $215 million alternative construction and term loan facility which will be available to be utilized as a back stop financing.
Tenders are invited for Back Stop Bg To Ir Drawing No.
Constructed of anodized aluminum with a tool steel pinch blade that can be adjusted using forward and back stops to regulate its stroke, this pinch valve is normally open and uses the full force of pneumatic power to close it.