Blood Letter

A blood letter refers to a letter from the underwriters (or the initial purchasers) to the issuer setting out the information that the underwriters have furnished for inclusion in the offering materials and the underwriters agree to indemnify the issuer in connection with losses arising out of misstatements or omissions relating to this information. Usually, the information that is provided by the underwriters is quite limited and references only a few sentences or paragraphs in the “Plan of Distribution” or the “Underwriting” section of the offering materials.

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