Engagement Letter

Definition:

In the context of an issuance, a letter that describes the arrangement between parties, such as the Engagement Letter between the underwriters or the initial purchasers and the issuer, to sell the issuer’s securities.

In the context of debt finance, an Engagement Letter is part of the Commitment Papers, and is signed along with the Commitment Letter and Fee Letter.

Most transactions will also involve an Engagement Letter between the issuer and the accountants setting out the scope of the accountants’ review of financial information as part of the transaction. See Auditor Arrangement Letter.

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