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 ?
Pursuant to a highly confident letter issued by such bank on October 25, 2013, such bank is highly confident to be able to arrange the Debt Financing, has obtained initial approvals from its credit committees for the Debt Financing and would be able to complete the Debt Financing in a timely and efficient manner.
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 announced that it has obtained a highly confident letter from Jefferies LLC to arrange for debt financing to fund a $20 per share dividend paid to all shareholders of Cracker Barrel Old Country Store, Inc.
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.
We have been in discussions with China Merchants Bank (the " Bank ") about financing the Acquisition and the Bank has provided the Consortium with a highly confident letter dated the date hereof, indicating that they are highly confident of their ability to fully underwrite the debt financing for the Acquisition subject to the terms and conditions set out therein.
Coty has also received a highly confident letter from J.
Included among the conditions to the highly confident letter (which was not a commitment to provide financing) were the completion of the lender's due diligence review of both Upper Deck and Topps, internal bank approvals, the absence of any material adverse change to the business or prospects of Upper Deck or Topps, the receipt of all third party consents, the absence of certain pending litigation and the receipt of certain solvency and other opinions.
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.
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