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 ?
A better way to stop BBs is to provide a backstop that has some give--like a piece of wall-to-wall carpet.
New investor commits to backstop up to US$100 million of concurrent offering - Support of unsecured noteholders increases to approximately 39% of outstanding principal amount - Meetings of affected noteholders and lenders to be held April 30th
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.
We have seen a boom with portable backstops in the high school market," says Kevin Murphy, Vice President of Sports Construction and Team Sports for American Athletic, Inc.
In marksmanship, it is known as "the rule of the backstop.
If the national governments were also unable to fill the gap, alternate public backstop should be used.
A syndication process is currently underway to identify the liquidity backstops to include several additional financial institutions, in order to scale M-LEC to a size and funding structure deemed appropriate by the consortium.
It brings pride to our program, getting scoreboards, drinking fountains, new backstops and benches, and a lot of the things you see around other youth baseball fields when we go there to play them.
Despite the expectation of continued lease payments, Fitch is concerned that the value of the aircraft collateral that backstops the Aerofreighter transaction has or might become impaired.
1 million shares of Chevron stock that backstops Devon's exchangeable debentures, the adjusted debt/capital drops to approximately 30 %.
Do I see instructor Chip Beaman standing in front of a pile of dirt covered in rocks as his backstop ["Dial or Hold?
CHICAGO -- Backstop Solutions Group, a leading software provider for hedge funds and other alternative investment managers, today announced that it was recognized as the top provider of Investor Relations Management software in the 2007 Alpha Awards.