Question
A non-investment grade company wants to borrow money. It is considering two options: (i) issuing a 144a high-yield bond, or (ii) issuing a leveraged loan.
A non-investment grade company wants to borrow money. It is considering two options: (i) issuing a 144a high-yield bond, or (ii) issuing a leveraged loan. The company is certain that interest rates will fall drastically next year. With this in mind, which form of debt would be most favorable and why? Why would the other forms of debt be less favorable?
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
