Standby agreement

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Standby agreement

In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.

Standby Agreement

An agreement between the issuer of a security and its underwriters stating that the underwriters are responsible for any unsold portion of the issue. That is, the underwriters agree to buy the remainder of a new issue if they are unable to place its entirety with investors. This transfers the risk of the unsold portion of the issue from the issuer to the underwriters. This guarantees that the issuer will raise the capital it intends to raise, but leaves the underwriters with the possibility that they must purchase an issue with low value. As a result, underwriters charge a standby fee for a standby agreement. It is also called firm commitment underwriting or a backstopped deal.
References in periodicals archive ?
With the switch off, the standby battery will not charge, so be sure to move it to ARM, which connects the battery to the essential bus.
Likewise, the parent-leaders of Pantawid Pamilyang Pilipino Program serve as standby workforce for repacking and relief distribution.
Sometimes, all you need is a single standby power system to back up your grocery store(s).
Seven out of 10 homes leave electronic devices on standby, with 38 per cent admitting they never completely switch them off.
19 August 2014 -- North Carolina US-based bank holding company Four Oaks Fincorp Inc (OTCBB: FOFN) said it has closed a rights offering and concurrent standby offering to Kenneth R Lehman in which the company issued an aggregate of 24m shares of common stock at USD 1.00 per share for aggregate gross proceeds of USD 24.0m.
Therefore, this paper deals with a problem of how to reduce standby power consumption in home, and, in particular, reduction of standby power consumed in RF remote receivers, which should be able to react to real time user commands even if the system power is off, is focused on.
In addition, a total of 2,481,365 shares of common stock will be issued to the standby purchaser, which amount includes 225,904 shares of common stock in consideration for providing its standby commitment.
media tablets and smart phones, as well as consumer electronic products and home networking devices that remain permanently plugged in to the wall in standby.
ACCORDING to British Gas, every year we waste around pounds 30 leaving products on standby. Save dosh with an automatic standby shutdown plug, like this one from Energenie.
The Hamad Medical Corporation and the Lusail Real Estate Development Company have officially opened Lusail City's fully-equipped ambulance standby station.
A new power measurement software package for the YOKOGAWA range of precision power analysers is said to provide a complete solution for the testing of standby power in accordance with the latest IEC62301 Ed.2.0 (international) and EN50564:2011 (European) standards.
- -- Pakistan last Friday paid the first installment of the loan it received from the International Monetary Fund (IMF) under the Standby Arrangement signed in 2008.

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