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 ( .

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247244899397", "objName" : "No front-running provision", "userID" : "2", "objUrl" : "", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "259b3dd2e:1514d681323:-2792", "analyticsSessionCookie" : "259b3dd2e:1514d681323:-2791", "statisticSensorPath" : "" }