What is the due diligence process for initial purchasers in connection with a Rule 144A offering?
The Rule 144A due diligence process is similar to that followed in connection with registered public offerings. Generally, the due diligence process is divided into two parts: (a) business and management due diligence, and (b) documentary, or legal, due diligence. In order to help establish their due diligence, the initial purchasers in a Rule 144A offering often will receive documents at closing that are similar to those used in an underwritten offering, including a comfort letter, legal opinions, and officer certificates.
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