Official Statement (“OS”)
The offering document used by an underwriter in a public offering.
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Preliminary Official Statement (“POS”)
The type of Offering Document circulated prior to the determination of the Interest Rates and certain other terms of the Bonds when it is anticipated or known the Bonds will be purchased by an Underwriter and resold to the public. In a Competitive Sale, a POS is used by the Issuer to gauge Underwriters’ interest in the Bonds. In a Negotiated Sale, a POS is used by Underwriter(s) to gauge interest by prospective purchasers and to facilitate the pricing of the Bonds. Normally, offers for the sale of the Bonds are not made based on the Preliminary Official Statement, and a statement to that effect appears on its face in red print, which is the origin of the “red herring” nickname of the Preliminary Official Statement.
See Also
Offering Document
The document prepared by, or for, the Issuer and distributed to investors to provide disclosure with respect to one or more issues of bonds.
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Indenture or Trust Indenture/Agreement
A contract between an issuer and a trustee under which the issuer issues bonds and specifies their maturities, interest rates, redemption provisions, form, exchange provisions, security and other terms.