No front-running provision

In the context of a syndicated loan (, a provision often included in a commitment letter ( (although it may form a separate letter in its own right) preventing an arranger ( or underwriter ( from making a private deal with a lender that would encourage the lender to invest in the secondary market ( instead of joining the syndicate.

The provision is particularly important if the loan is underwritten as the process of front-running may distort an arranger's or bookrunner's ( primary market ( and adversely affect syndication leaving the underwriter with additional debt to underwrite.

The prohibition on front-running is often extended to each of the primary syndicate lenders as a similar provision may be included in their confidentiality letters which each lender must sign before it receives the information memorandum (

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