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Highly Confident Letter
(redirected from Highly Confident Letters)

   Also found in: Wikipedia 0.02 sec.
Highly confident letter
An investment banking firm's letter indicating that the firm is highly confident it will be able to arrange financing for a securities deal.

Highly Confident Letter
A letter issued by an investment bank stating that is believed it can arrange the necessary financing for an acquisition. A highly confident letter is made at the behest of the potential acquirer. While they have no legal status, highly confident letters can assuage nervous investors and persuade them that a deal can be completed, even though not all financing mechanisms have been arranged. Highly confident letters originated in the 1980s and were primarily used by corporate raiders.

highly confident letter
An investment bank's statement that it can raise the necessary capital to complete a deal based on current market conditions and its analysis of the deal. Highly confident letters are useful for companies that want to convince the investment community they can raise the necessary capital to finance an acquisition.


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To date, Carlile has received commitments and highly confident letters in excess of $50 million to capitalize the bank.
CD&R has secured financing commitments and highly confident letters from J.
The merger agreement will terminate if the investor group has not obtained customary commitment and highly confident letters to provide the required debt financing within thirty days after the date of the merger agreement.
 
 
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