Standby Underwriter

Standby Underwriter

An underwriter who agrees with the issuer of a security and its underwriters to be responsible for any unsold portion of the issue. That is, the underwriter agrees to buy the remainder of a new issue if it is unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriter. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriter with the possibility that it must purchase an issue with low value. As a result, standby underwriters charge a standby fee.
References in periodicals archive ?
Ross and other shareholders have committed to be standby underwriter of a proposed rights offering to existing shareholders of US $100 million of new equity.
was engaged as the standby underwriter for this offering.
The remaining $700 thousand will be provided by the standby underwriter.
NASDAQ-NMS:MAXI) announced today that its letter of intent with MDB Capital Group LLC to act as standby underwriter with respect to the Company's pending rights offering has been terminated.
The net proceeds to the Company are estimated to be approximately $47,700,000 after deducting the Standby Underwriter Fees and expenses and other offering expenses of the Company from the sale of 2,270,788 Units in the Rights Offering at the Subscription Price of $17.
Tucker Anthony Incorporated has been engaged as financial advisor and will act as the standby underwriter for this offering.
The Company intends to make arrangements with a standby underwriter pursuant to which the standby underwriter will agree to purchase from the Company sufficient shares of the Company's Common Stock at $44.
In that regard, Mineral Resources noted that its financial adviser, Griffiths McBurney & Partners, had confirmed that it was prepared to act as a standby underwriter for any rights not taken up by Anvil Range shareholders.
The Company has not retained a standby underwriter to purchase shares not purchased through the exercise of rights.
structure, with up to $2 million to be paid to a third party standby underwriter.
the standby underwriter, if the average market price of the Company's Common Shares equals or exceed $10.
the standby underwriter of the offering in which the units were sold, may determine, at $0.