Order Allocation - Best Practices?

Hi, All.  Curious what everyone is seeing out there as best practices for order allocation for bond sales.

We sell bonds solely into the private placement market and our deals are typically ~$100-500MM in size.  We typically raise bond financing for small/medium RE funds and/or REITs.

At this deal size, deals can easily be 2-3X over-subscribed with many bond investors padding their order and/or demanding half (or all) the deal.  Obviously, a simple pro-rata order allocation still leaves many investors getting far less than desired.  I've seen where some smaller investors are at least guaranteed a minimum.

Curious what everyone else typically sees in these over-subscription scenarios (ie. pro-rata for orders?  Or give more to long-term relationships)?    Thanks all!

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