Private placement versus public debt offering: Nalco Holding is an international company that operates in 130 countries, has a market capitalization (market value of equity) of $2.3 billion, and reported net income of $45 million on $3.3 billion in revenues last year. The company needs to raise $200 million in debt, and management is deciding between private placement and public offering.

What are the advantages and disadvantages of the two alternatives, and which is likely to be the better choice?