InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
AI Subscribe Login/Register account icon
S&P 500
5,648.40
(
1.01%
)
US TECH 100
19,042.80
(
1.15%
)
Dow Jones
41,563.08
(
0.55%
)
Brent Oil
77.00
(
-2.24%
)
Bitcoin
59,002.10
(
-0.66%
)
Post# of 43557
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

Gator328

Send PM Follow Ignore
Followers 43
Posts 2488
Boards Moderated 0
Alias Born 10/19/2015

Gator328

Re: Pr0drIv3 post# 33820

Tuesday, 03/06/2018 9:40:50 PM

Tuesday, March 06, 2018 9:40:50 PM

Post# of 43557
A backstop guarantor will ALWAYS receive some sort of compensation for taking the risk associated with being the backstop.

Usually this means a breakup fee if the offering is fully subscribed and the backstop is not needed. Other times it means that the backstop acquires equity at a discount.

Think about it...if you're going to be the guarantor of an offering, and the public has rejected that offering because the terms are seemingly not beneficial, wouldn't you demand that your terms are more favorable?
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up