Sale of bonds to select qualified investors, in a private process, avoiding a wide and publicly announced marketing process. For high yield bonds, this is a relatively rare occurrence, although it could be done in some situations where the amount being raised is relatively limited and the issuer prefers to avoid a public marketing.

Multiple legal, disclosure and fungibility considerations would need to be taken into account.

If you would like to learn more about the financing process, please see our Termgrid Primers – Series 1: The Debt Financing Process.