Standby Underwriter

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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 ?
The seven business day period for Standby Underwriters to subscribe their quota of outstanding 229,759,087 new shares has expired and there has been no new uptake of shares.
will act as standby underwriters for any shares of Evercel Common Stock that are not purchased in the Rights Offering.
Any Units of Nam Tai not purchased upon exercise of the Rights will be purchased by a group of Standby Underwriters and then offered to the public.
As the offering has been fully subscribed, the standby underwriters will not be acquiring any shares pursuant to their standby underwriting commitments.
The standby underwriters are First Colonial Securities Group Inc.
Any units not purchased upon exercise of the Rights distributed in the Rights Offering will be purchased by a group of standby underwriters for whom Joseph Charles & Associates, Inc.
The standby underwriters of the rights offering are William H.
The Standby Underwriters of the rights offering are William Gates, III, principal shareholder and director, and George B.
The 13,636 shares of common stock that would have been issued had these redeemed shares been converted are being sold to the standby underwriters, Paine Webber Inc.
pursuant to which, if any preferred shares are not converted to common before redemption, the standby underwriters have agreed, subject to certain conditions, to purchase from Calgene the number of common shares that would have been issuable upon conversion of such redeemed preferred shares.