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 ?
However, we think it is a grave yard and that the back stop must be moved forward so that the number of animals that are lost because they are being starved is kept to an absolute minimum, " explained NBA chief executive, Robert Forster.
Ms Curnock Cook added: "Personally, I do feel we need to have a different approach on how we provide a back stop, that's an important consideration for the admissions process review, which we are still working on.
Captain Chris Britton deputises in the bowling box, while Mike Rudd strengthens the batting line-up - weakened by the loss of reliable opener Peter King with a hand injury - by playing at back stop.
Comcast's revolver will serve as liquidity back stop for the Comcast Corporation commercial paper program.
Because the rights offering was fully subscribed by the public, MacAndrews & Forbes, Revlon's principal indirect shareholder, was not required to purchase any shares in excess of its pro-rata portion pursuant to its agreement to back stop the rights offering.
387 million construction loan supported by a political risk guarantee expected to be issued by the Export-Import Bank of the United States ("USExim"); $58 million of project letters of credit; $215 million alternative construction and term loan facility which will be available to be utilized as a back stop financing.
Tenders are invited for Back Stop Cast Steel Machined To Drawing No.
LNG, a cleaner fuel compared to oil, serves as a back stop to renewable energy, reliability of which is known to be lesser.
Tenders are invited for Combined Back Stop And Retaining Clip To Drg No.
Constructed of anodized aluminum with a tool steel pinch blade that can be adjusted using forward and back stops to regulate its stroke, this pinch valve is normally open and uses the full force of pneumatic power to close it.
Atmos' $350 million revolving credit facility that back stops it commercial paper provides more than adequate near-term liquidity.