Bonds are kind of a "big company" tool for borrowing. It takes a lot of time to prepare a bond issuance and there are a lot more costs compared to borrowing with notes. Most often the rate is set far in advance of when the bonds are actually issued. I worked on a $125 million bond issue and it took about 4 months to prepare the prospectus and market the bonds,
So why would companies choose to raise money with bonds vs. notes?© BrainMass Inc. brainmass.com June 4, 2020, 12:25 am ad1c9bdddf
NOTE: I the OTA's own words in accordance with BM rules
In spite of the considerable resources, including time and fees, involved in the issuance of bonds, companies still choose to raise money through bonds rather than issuing ...
The expert determines why would companies choose to raise money with bonds versus notes.