Which statement is correct?

Multiple Choice

• Rarely is debt issued privately in the U.S.

• All U.S. debt issues, private and public, must be registered with the SEC.

• Private placements generally have shorter maturities than term loans.

• It is easier to renegotiate a public issue than it is a private issue of debt.

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