Transmittal Letter (Underwriters' Payment to Custodian; Public Equity Offering)
Summary
This template letter of transmittal may used in a combined primary and secondary public equity offering or a pure secondary offering to memorialize the underwriters’ payment to the custodian of the selling stockholders of the net offering proceeds for the securities sold for the accounts of the selling stockholders in the offering. This template includes practical guidance, drafting notes, and optional clauses. This letter may be sent in response to a letter of transmittal from the custodian confirming its transmittal of the securities to the underwriters, if such securities have been received. For a template of such letter from the custodian, see Transmittal Letter (Delivery of Selling Stockholders' Shares by the Custodian). Generally, payment by the underwriters and delivery of the securities by the custodian at closing are deemed to occur simultaneously. Counsel should check the underwriting agreement for the exact delivery and payment mechanics. This letter and the letter from the ...