Series 79: 7.1.3. The Underwriting Agreement

7.1.3. The Underwriting Agreement

The UA is the formal agreement between the issuer and the sole or lead underwriter. (Syndicate or selling group members give the lead underwriter the ability to negotiate the UA on their behalf when they sign the AAU or selling group agreement.) Unlike the LOI, the UA is a binding commitment. As mentioned previously, the UA is signed in the window of time between the final decision about the public offering price and the offering date. However, much of it is negotiated well in advance,  so we will discuss it here rather than in the chapter on the post-effective period.

The UA specifies the public offering price or a formula for determining it. The UA also specifies the per-share underwriting