direct placement

Direct placement

Selling a new issue not by offering it for sale publicly, but by placing it with one of several institutional investors. Also known as a private placement.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Private Placement

The sale of a new issue to a few large institutional investors without registering with the SEC. A private placement is exempt from SEC registration, subject to certain restrictions, because it is not offered to the general public. In order to make a private placement, the issuer must file a private placement memorandum (PPM), which explains exactly why the issue complies with SEC Regulation D exempting certain companies from registration; this is done to protect both the issuer and the investors. According to Regulation D, a PPM must contain a complete description of the security and the terms of the sale. It must also include applicable information about the issuer's financial situation and applicable risk factors. Private placement is also called direct placement.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

direct placement

The sale of a new security issue to a limited number of large buyers rather than to the general public. Direct placement generally involves less expense to the issuer, although the buyer may be able to negotiate a more favorable price.
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 ?
Many agreements offer guaranteed admission, financial incentives such as reduced tuition costs or scholarships, advising and some even offer direct placement into honors."
He also played a leading role in completing a USD 33 million direct placement bond to refinance outstanding bond debt with a USD 4 million net present value savings.
Fitch does not rate the $145.8 million parity revenue bonds series 2017A issued as a direct placement. The Rating Outlook is Stable.
Remedy Intelligent Staffing is a workforce solutions company while the talent acquisition team specializes in direct placement opportunities in advanced manufacturing, engineering, technical and more.
Any build up in reserves that we might see in the near future will reflect the impact of Saudi support, of which $3bn will come in the form of direct placement of dollars into our national accounts and up to $3bn of oil imports on deferred payments a year, for a period of three years.
Temporary, temp-to-perm and direct placement. From general laborers, tradesmen, IT, manufacturing, engineering, administrators, human resources and everything in between.
"The DSWD continues to warn the public to prevent any transaction in social media promising direct placement of children up for adoption.
Insight Global completes more than 33,000 placements annually in short-term, long-term, contract-to-hire, and direct placement positions through our network of more than 43 regional offices across the U.S.
As a result, Bavarian Nordic has completed the direct placement to Johnson & Johnson Innovation - JJDC Inc, consisting of 512,102 new shares of nominal value DKK10 each, corresponding to approximately 1.63% of the company's existing share capital, issued at a subscription price of DKK 405.1578 per new share and raising gross proceeds to Bavarian Nordic of DKK207.5m.
He also created lending structures for investors, leveraging an array of lending products from conventional construction and permanent financing, tax-exempt bond direct placement, bridge loans, and federal, state, and historic tax credit programs.
TMAC offers strategic and tactical medical science liaison (MSLs) and clinical nurse educator support services, as well as medical affairs consulting, medical communications support, and direct placement services.