What does it mean to backstop something?
What does it mean to backstop something?
transitive verb. 1 : support, bolster. 2 : to serve as a backstop to. 3 : to play the position of goalkeeper for backstop a hockey team.
What is a backstop measure?
A back stop is the act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. Back stops function as a type of “insurance” and support for the overall offering, ensuring that the offering does not fail if all shares are not subscribed.
What is backstop commitment agreement?
A backstop or back-to-back equity commitment letter most commonly used in connection with a private equity club deal buyout. This letter agreement sets out the terms and conditions by which a private equity or other investor commits to satisfy a portion of the sponsor’s equity financing commitment.
What is a backstop party?
Backstop Parties means certain of the Consenting Stakeholders or their successors, assigns, or Related Funds (in each case, as allowed pursuant to the Backstop Commitment Agreement) that have committed to backstop the DIP Term Facility on the terms set forth in the Backstop Commitment Letter, solely in their capacities …
What is a backstop fee?
Backstop Fee means the commitment premium, approved pursuant to the Confirmation Order, of five percent of the $200 million committed amount payable in New Common Stock (issued at the same price as the Rights Offering Shares) to the Backstop Parties on the Effective Date.
What does it mean to backstop debt?
A term used in the financial industry to mean credit support or backup funds for a financial instrument or transaction. For example, bank revolving credit loans are often obtained to backstop commercial paper in the event that the commercial paper issuer defaults on its payments.
What is a backstop payment?
What does it mean to backstop money markets?
A backstop is a financial arrangement that creates a secondary source of funds in case the primary source is not enough to meet current needs. It can also be thought of as an insurance policy that covers the inadequacy of a source of funds. Backstop in financial management.
What is a backstop premium?
Backstop Premium means a number of shares of fully diluted New Common Stock equal to six percent (6%) of the Rights Offering Equity and distributable to the Senior Commitment Parties under the Backstop Agreement Order.
What does it mean to backstop a letter of credit?
A term used in the financial industry to mean credit support or backup funds for a financial instrument or transaction. New letters of credit may be issued to backstop outstanding letters of credit that were issued under a bank loan facility that is being refinanced or terminated. …
What is a liquidity backstop?
VRDOs have an explicit liquidity backstop facility whereby a liquidity provider (usually large banks) acts as “buyer of last resort.” The liquidity facilities are usually in the form of a direct letter of credit or a standby bond purchase agreement.
What does it mean to backstop a rights offering?
A backstop purchaser, also called a standby purchaser, is an entity that agrees to buy all the remaining, unsubscribed securities from a publicly traded company’s rights offering, or issue. In exchange for a fee, they provide security, guaranteeing that all of the newly issued shares will be purchased.
Which is the best definition of a backstop?
Definition of backstop. (Entry 1 of 2) 1 : something at the back serving as a stop: such as. a : a screen or fence for keeping a ball from leaving the field of play.
When is the backstop date of a month?
Backstop Date means the last day of the [*] full month following the month in which the Option Effective Date occurs.
When does a company need a back stop?
A back stop is the act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. When a company is trying to raise capital through an issuance, it may get a back stop from an underwriter or a major shareholder, such as an investment bank, to buy any of its unsubscribed shares.
What is the backstop date in Hong Kong?
backstop date means 11.59 p.m. (Hong Kong time) on the date falling on the earlier of 10 Months after the Commitment Date and four Months after the Scheme Effective Date. Sample 1 Based on 1 documents
What does it mean to backstop something? transitive verb. 1 : support, bolster. 2 : to serve as a backstop to. 3 : to play the position of goalkeeper for backstop a hockey team. What is a backstop measure? A back stop is the act of providing last-resort support or security in a securities offering…