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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
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.
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.
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