Negotiated Underwriting

A process in which both the purchase price and the offering price for a new issue are negotiated between the issuer and a single underwriter.

Investopedia Says:
The underwriter pays the issuer a purchase price, and the public pays the offering price. The spread between the purchase price and the public offering price represents the proceeds to the underwriter.

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Underwriting of new securities issue in which the Spread between the purchase price paid to the issuer and the public offering price is determined through negotiation rather than multiple competitive bidding. The spread, which represents the compensation to the investment bankers participating in the underwriting (collectively called the syndicate), is negotiated between the issuing company and the Managing Underwriter with the consent of the group. Most corporate stock and bond issues and municipal revenue bond issues are priced through negotiation, whereas municipal general obligation bonds and new issues of public utilities are generally priced through competitive bidding. Competitive bidding is mandatory for new issues of public utilities holding companies. See also Competitive Bid.