Which statement is correct? a. a direct placement of debt generally has more restrictive covenants than...

Which statement is correct?

a. a direct placement of debt generally has more restrictive covenants than a public issue

b. it is easier to renegotiate a public issue rather than a private issue of debt

c. rarely is debt issued privately in the US

d. all US debt issues, private and public, must be generated with the SEC

e. private placements generally have shorter maturities than term loans

Solutions

Expert Solution

Direct placement of debt will be generally having more restrictive covenants than a public issue. Direct placement of debt will be putting in higher covenants rather than public issue.

All the other statement regarding private placement and debt securities and public issues are false.

Correct answer will be option ( A) A direct placement of debt generally has more restrictive covenants than a public issue.

jeff jeffy answered 2 years ago

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