FIXED PRICE REOFFER

fixed price reoffer: translation

A means of issuing Eurobonds where the lead manager of the issue distributes the bonds to the management group who then place the bonds on with their clients. They are not however permitted to place the bonds at a price below the fixed price agreed in advance until the syndicate is broken. The syndicate is only broken by the lead manager when most of the issue has been placed at the fixed price. The purpose of this rule is to ensure that when managers bid to participate in the management group, they bid at prices which are realistic. Dresdner Kleinwort Wasserstein financial glossary

See also bought deal. Dresdner Kleinwort Wasserstein financial glossary