highly confident letter


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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.
References in periodicals archive ?
Perth, Australia, Nov 28, 2011 - (ABN Newswire) - Sundance Resources Limited ('Sundance' or 'the Company') (ASX:SDL) has today received formal notice from Hanlong (Africa) Mining Investment Limited ('Hanlong') that Hanlong will not receive the Highly Confident Letter from China Development Bank due by 28 November 2011 and requests that Sundance waive the requirement for the letter as a condition precedent for Phase One of the Scheme Implementation Agreement ('SIA') which was signed by both parties on 4 October 2011.
Fursa's proposal is subject to completion of due diligence and was accompanied by a highly confident letter from a debt financing source that is non-binding and subject to a number of conditions.
Today we went into a trading halt due to being advised by Hanlong that they will not receive the Highly Confident Letter, which was a condition of the first phase of the Scheme, by 28 November 2011.
Shepard has provided a highly confident letter from a respected banker for up to $300,000,000 in financing.
This "illusory" offer is backed by a highly confident letter by a respected investment banker for up to $300,000,000 in financing.
Rick" Sommer, President and CEO of Citation, stated that among the factors considered by the Board of Directors in June when it approved the merger agreement were Kelso & Company's strong business reputation for closing transactions similar to the merger, and the receipt of the highly confident letter.
addressed to the Special Committee, the Board has received a highly confident letter from its financial advisor, Donaldson Lufkin & Jenrette Securities Corp.
Key Energy has reportedly also received a highly confident letter from Dain Rauscher Wessels to arrange financing in the event the holders of Dawson's 9 3/8% senior notes exercise put rights triggered upon a change of control of Dawson.
Key has also received a highly confident letter from Dain Rauscher Wessels to arrange financing in the event the holders of Dawson's 9 3/8% Senior Notes exercise certain put rights triggered upon a change of control of Dawson.
With details to be announced separately, financing for the acquisitions has been arranged through third parties who have provided highly confident letter commitments for such financing.
2 billion bank credit facility, as well as a highly confident letter from Goldman Sachs and Citibank for a $475 million senior subordinated debt offering to finance the cash consideration paid to Laidlaw, refinance existing Allied debt and provide for future working capital and acquisition financing requirements.
STI, as the surviving corporation, intends to raise senior debt from banks and subordinated debt from the capital markets and has entered into financing arrangements with CS First Boston which include a highly confident letter for all of the debt financing for the transaction.
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