Back Stop

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Back Stop

In an issue of new stock, a guarantee made by an investor, usually an institution, to a publicly-traded company that it will buy the remainder of an issue if the company is unable to place it all with other investors. For example, an institution may announce that it will provide 100% back stop to a company's new issue up to $50 million. If the company only raises $35 million by placing the security with other investors, the institution will buy the remaining $15 million worth of stock.
References in periodicals archive ?
Pursuant to the Private Placement and the Backstop Agreement, an aggregate of 21.
63% of the Existing Notes, have agreed to backstop the Offering.
After the election, if the Republicans gain control of the Senate, there is a higher chance the backstop will not be extended or, if extended, the extension might be for only one year," he said.
The inventor of the Backstop Buddy has developed a working prototype that has been utilized with success.
It has to be assessed on a case-by-case basis to what extent a temporary access to a public backstop is needed to ensure a quick and smooth recapitalization without excessive use of taxpayer money or a negative impact on financial stability," said Mersch.
Combine a backstop like that with a large powerful magnet, and your cleanup becomes much easier.
The insurer is understood to have dubbed the pounds 1bn backstop fund "Armageddon money", as it would be used to cope with a one-in-100-year economic downturn.
This time it is equipped with an additional computer-controlled axis on the backstop that speeds set-up between batches, resulting in less machine idle rune and higher output.
7% of respondents said they would not support the creation of a national fund by the federal government to backstop major natural disasters along the lines of Hurricane Katrina or the San Francisco Earthquake and Fire of 1906.
TRIA supporters claim that the backstop, working essentially in place of the reinsurers, is the only thing that has made terrorism insurance available and affordable.
It hit the backstop but had too much spin and rolled down into the rough in front of the green.
Ten years ago, when I started with the company, we rarely sold a portable backstop to a high school.