letter of intent

letter of intent definition - finance
  1. A document that formalizes the agreement between a company and an underwriter. The letter of intent outlines the process for an initial public offering or for a secondary debt or stock issue and outlines the underwriterÂ’s fees, ranges for stock or debt prices, and other pertinent terms.
  2. A document that is signed by two companies that plan to merge. The document contains pertinent terms of the merger such as the price the company will be purchased for, the preliminary merger schedule, and who will have leadership positions in the new, combined company.
  3. A document created by a bank that outlines the terms on a loan that it is willing to make to a corporation.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.