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Deferred underwriting fee
The part of the underwriting commission held back and paid only if a combination closes.
Underwriters typically take 2% at the IPO and defer another 3.5%, payable from the trust at closing. If the vehicle liquidates, the deferred portion is never paid.
Several banks waived deferred fees during the downturn, which is disclosed and is a candid signal about how they viewed a deal's prospects.
Related terms
See the term in the wild: the screener shows trust size, per-share value and deadlines for every U.S. SPAC, and each profile links to the filings the numbers came from.
Definitions describe market practice and are not investment, legal or tax advice.