syndicate

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Syndicate

A group of banks that acts jointly, on a temporary basis, to loan money in a bank credit (syndicated credit) or to underwrite a new issue of bonds.

Syndicate

1. In banking, a group of banks that each lend an amount of money to a borrower, all at the same time and for the same purpose. The banks in a syndicate cooperate with each other for the duration of the project, even if they are otherwise competitors. Bank syndicates usually only lend large amounts of money. Every syndicate is a temporary arrangement.

2. In investment banking, a group of underwriters responsible for placing a new issue of a security with investors. As with banking syndicates, the members of an underwriting syndicate work together for the duration of the project. Every syndicate is a temporary arrangement. It is also called a purchase group or a selling syndicate.

syndicate

A combination of investment banking firms that bids on a new security issue and then sells it if the bid is successful. The syndicate disbands when the security offering has been completed. Syndicates are needed to spread the risk and obtain greater financial and marketing resources for large issues. Also called purchase group, underwriting syndicate. See also agreement among underwriters, breaking the syndicate, selling group.

syndicate

To distribute shares of ownership in a partnership or joint venture. For example, a brokerage firm may syndicate ownership in certain oil and gas properties.

Syndicate.

When a group of investment banks works together to underwrite and distribute a new security issue, they are acting as a syndicate.

Syndicates are temporary, forming to purchase the securities from the issuer and dissolving once the issue is distributed.

However, new syndicates, involving some of or all the same banks, form on a regular basis to underwrite each new issue. You may also hear these underwriting syndicates called purchase groups, underwriting groups, or distributing syndicates.

In other financial contexts, syndicate may refer to any group of financial institutions that works together on a particular project. Syndicate also describes a group of investors who make a joint investment in a company.

syndicate

A method of selling real property in which a sponsor—the syndicator—sells interests to investors. At one time limited partnerships were the preferred vehicle.Today tenant-in-common properties (TICs) are extremely popular.

References in periodicals archive ?
The first of these required notification points came by October 16, 1997, when members of the Purchasing Group had acquired in excess of 10 percent of outstanding First Western shares.
The primary difference between risk retention groups and purchasing groups is that risk retention groups retain risks while purchasing groups do not.
Kluge says it takes about 50 buildings to participate in a Risk Purchasing Group, and that this can be done through a managing agent or other types of affiliations, such as the co-op associations that have been formed throughout the boroughs of New York City.
Howard Greene, RIMS director of governmental affairs, spoke in favor of the bill (see last month's RM Spectrum) but recommended several amendments, including permitting associated and parent organizations to assist in capitalizing a risk retention group without becoming an insured or group member; permitting an association or sponsoring entity to own a risk retention group even if some of its members are not members of the group; adding surety bonds to the definition of insurance; clarifying securities laws exemption provisions to include groups set up under a holding company structure; and clarifying purchasing group provisions to ensure that insurers of purchasing groups meet capital and surplus requirements in a single state only.
RF Surgical's agreement with HealthTrust Purchasing Group is a key milestone in bringing a clinically proven solution that improves patient safety and prevents additional costs to HealthTrust members.
For example, the owner of a business not considered "high risk" might end up paying the same premium as those that are high risk because all are in the same purchasing group.
Keep your options open when considering a purchasing group or an alliance.
Three years ago, the company started a purchasing group for its own buildings.
DAYTON, Ohio -- WorkflowOne, a leading provider of print management, distribution and marketing services, announced today that HealthTrust Purchasing Group, L.
Contract notice: Implementation of the comprehensive supply of natural gas-rich e-type for the needs of the community purchasing group zagnansk.
The RSA Purchasing Group was rounded by the backing and support of the Rent Stabilization Association of New York, Inc.

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