letter of intentletter of intent
nounpl. letters of intent
A written statement expressing the intention of the undersigned to engage in a certain action or business transaction.
letter of intent - Investment & Finance Definition
- 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 underwriter’s fees, ranges for stock or debt prices, and other pertinent terms.
- 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.
- A document created by a bank that outlines the terms on a loan that it is willing to make to a corporation.
letter of intent - Legal Definition
A non-binding summary of the proposed terms of a contract contemplated by the parties.