Abstract
Past bank-firm lending relationships affect the probability of choosing a bank as debt-underwriter. However, there is no evidence regarding how these relationships may influence the decision to syndicate the issuance; nor is there evidence of their effect on the syndicate formation. Using a sample of European corporate bonds from 2003–2013, we show that prior lending relationships have a significant impact on the syndication choice. Reputable banks refrain from joining a syndicate if they perceive that they are matching with less reputable counterparts. Furthermore, when lending relationships explain the syndication choice, there is a negative effect on at-issue spreads
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