syndicate

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Syndicate

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.

Syndicate

1. In banking, a group of banks that each lend an amount of money to a borrower, all at the same time and for the same purpose. The banks in a syndicate cooperate with each other for the duration of the project, even if they are otherwise competitors. Bank syndicates usually only lend large amounts of money. Every syndicate is a temporary arrangement.

2. In investment banking, a group of underwriters responsible for placing a new issue of a security with investors. As with banking syndicates, the members of an underwriting syndicate work together for the duration of the project. Every syndicate is a temporary arrangement. It is also called a purchase group or a selling syndicate.

syndicate

A combination of investment banking firms that bids on a new security issue and then sells it if the bid is successful. The syndicate disbands when the security offering has been completed. Syndicates are needed to spread the risk and obtain greater financial and marketing resources for large issues. Also called purchase group, underwriting syndicate. See also agreement among underwriters, breaking the syndicate, selling group.

syndicate

To distribute shares of ownership in a partnership or joint venture. For example, a brokerage firm may syndicate ownership in certain oil and gas properties.

Syndicate.

When a group of investment banks works together to underwrite and distribute a new security issue, they are acting as a syndicate.

Syndicates are temporary, forming to purchase the securities from the issuer and dissolving once the issue is distributed.

However, new syndicates, involving some of or all the same banks, form on a regular basis to underwrite each new issue. You may also hear these underwriting syndicates called purchase groups, underwriting groups, or distributing syndicates.

In other financial contexts, syndicate may refer to any group of financial institutions that works together on a particular project. Syndicate also describes a group of investors who make a joint investment in a company.

syndicate

A method of selling real property in which a sponsor—the syndicator—sells interests to investors. At one time limited partnerships were the preferred vehicle.Today tenant-in-common properties (TICs) are extremely popular.

References in periodicals archive ?
Limited, 071-260-9290; or Barclays de Zoete Wedd Limited, Advisers to the banking syndicate, 071-623-2323/
Assuming the banking syndicate activity is managed on a treasury management system, the members will experience improved internal controls in addition to the significant financial impact.
The board of WPP announced that these discussions have advanced to the point where outline proposals were yesterday presented to the full banking syndicate.
The amended credit facility was arranged through the Bank of Montreal as lead bank and administrative agent for the banking syndicate consisting of the Bank of Montreal, the Bank of Nova Scotia, the Bank of Tokyo-Mitsubishi (Canada), the National Bank of Canada and the Royal Bank of Canada.
It was also announced that the Company and its banking syndicate, as well as the holders of the senior unsecured notes, were in the process of negotiating certain amendments to the applicable agreements to increase the specified thresholds, effective the end of the third quarter in order to cure this non-compliance.
Part of the acquisition was funded through a non-recourse US$500 million bridge debt facility provided by a banking syndicate led by Citigroup, ABN Amro and ScotiaCapital.
As announced on December 16, 2004, the second US$5 million tranche of funding from Polaris banking syndicate, led by Standard Bank London, has been approved for the second 10 MW (Stage 2 - Binary Cycle Plant) of Phase 1.
NYSE: ITN) announced today that it has concluded a C$60 million revolving credit facility with an international banking syndicate composed of Canadian Imperial Bank of Commerce, The First National Bank of Boston, Lloyds Bank PLC and Credit Lyonnais Canada.
TSX VENTURE:GEO) a developer of geothermal power projects, announced today that its banking syndicate, comprised of Standard Bank London Limited and the Banco Centroamericano de Integracion Economica (CABEI), has approved the second US$5 million tranche of a US$10 million senior credit facility to fund construction of Phase I of the Company's 66 mega watt (MW) San Jacinto-Tizate geothermal project in Nicaragua.
announced today that it has been informed by Tandy Corporation (NYSE: TAN) that Tandy has reached agreement with InterTAN's Banking Syndicate to acquire all of InterTAN's debt from the Banking Syndicate, subject to execution of definitive agreements.
However, the lead lender under the bank credit agreement has agreed to provide a bank credit facility to the Company until January 31, 2005, either on its own or together with one or more of the other lenders in the banking syndicate.
As a result, the banks' negotiating committee agreed to seek approval from the various credit committees of all the banks to a proposal whereby Tandy Corporation will acquire all of InterTAN's debt from the Banking Syndicate at a negotiated price.