Blood Letter

Definition:

A letter from the underwriters (or initial purchasers in the context of a 144A Offering) to the issuer, confirming that certain information included in the offering document is the same as that provided to them, and in which they agree to indemnify the issuer for losses relating to any misstatements or omissions arising out of the information contained in the offering document. This is intended to provide protection for the issuer against any errors made by the underwriters because liability for the content of the offering document is, generally, that of the issuer. However, in practice, the information covered by a Blood Letter is very limited.

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