Best Efforts

From Reuters Financial Glossary

In a best-efforts deal, the agent or agents commit a given amount, but the credit is at the mercy of the market. If other banks elect not to join the deal, then the credit is not closed. Best-efforts deals tend to be used for leveraged borrowers or more complex structures, when the chances that the other lenders will pass on the deal are higher. The pricing and fees tend to be lower than those paid in a fully underwritten deal.