Red herring prospectus

A Red Herring or Preliminary Offering Memorandum is a temporary securities issue prospectus and refers to a mostly penned in the English language document in booklet form of up to several hundred A4 pages. It contains the details of a bond issuance, a new on the capital market -making obligation, with all the facts, figures and balance sheets of the issuers backgrounds to industry and much more. Even political conditions, market conditions, linkages and find other ex - and implicit information and data of the issuer or can not find mention in the Red Herring.

In a Red Herring, all emission data without the relevant information, such as coupon accurate issuing and expiry date, early repayment date, Issue Size, Part denominations ( Engl. / Franz. Coupon), etc printed and during the marketing phase (the so-called road show ) distributed to interested investors or sent. The Red Herring is in contrast to criminology a publication which clearly defines all relevant facts to the above-mentioned data of the bond issue. It is very likely, therefore, Red Herring named because the emission design has the note in red font on the front page of the Preliminary Offering Memorandum, that the information is not complete and is subject to change in circumstances. For investors, the information is irrelevant in so far as all other aspects of a new issue being, top important to make the policy decision to introduce a new bond as an investment and capital investment. In the second phase, the possible price is predefined during the roadshow.

The relevant and missing in the Red Herring bonds data are defined during the marketing phase of the Panel of Syndicate Bank / s and the institution due to the existing demand. On the Issue Date ( time position), the data are clear and precise, the price of the bond. The final prospectus is printed due to the pricing again and archived.

• Securities issue