The entity or entities, typically commercial banks, which purchases the Bonds pursuant to a Private Placement (also known as a direct purchase or a bank placement) for its own portfolio.

At the Closing, the Lender delivers an Investor Letter to the Issuer, sometimes called a “big boy letter,” certifying that the Lender understands the terms of the transaction, has the expertise to perform its own credit analysis and will not rely on disclosures of the Issuer or others in deciding to purchase the Bonds.

See Also

Lender’s Counsel

An attorney or firm of attorneys engaged to represent the lender in a private placement.

Hudson Yards Rail Yards

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Term of the Week

Securities Act of 1933

Law designed to ensure that investors are provided with material information about new issues of securities offered for sale to the public.