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Methods Of Sale/Financing

Approach Step
IPO icon

Public Offering Method of Sale

Under a public offering, an underwriter purchases bonds from an issuer with the intent to resell the bonds to investors. Sales can be made to institutional investors such as mutual funds or insurance companies, or to individual investors, known as retail investors.

  • Longer term, 30+ years
  • Lower interest cost
  • Promotes overall credit quality
  • Wider market
direct icon

Direct Placement Method of Sale

A direct placement is a sale of a new issue of securities directly to an investor or a small group of investors without a public offering. Directly placed securities do not require SEC registration.

  • Staff time is reduced
  • Issuance costs are reduced
  • Shorter, more streamlined process
  • Interest rate locked up to 60 days