Advantages of Private Placements Include

question 69

Multiple Choice

Advantages of private placements include:

• A) Cost of funds may be lower.
• B) Private lenders are more willing to negotiate changes to a bond contract.
• C) The speed of private placement deals and flexibility in issue size.
• D) All of the above.

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Definitions:

Unlever

The process of reducing the level of debt in a company's capital structure, either by paying off debt with equity or with profits generated from operations.

Lend Out

The act of providing a loan or capital to another party with the expectation of being repaid, often with interest.

Repurchase Shares

The act of a company buying back its own shares from the marketplace, which can affect the company's stock value and earnings per share.

Weighted Average

A method of calculating an average whereby each component of the dataset contributes to the total average in proportion to its assigned weight.