issuing bonds?

Question

i want to know is it possible for a company to raise $ 40 million by issuing bonds? or it is too less to do? so what the minimum amount ?should it be at least $100 million ? please tell me

Answer 1

$40MM is on the small size, but there have been bond issues that size. Most companies that want to borrow that amount probably do it through a corporate bank loan.

Bond issues typically have a lower interest rate than bank loans, but have higher fixed fees. This makes it more expensive to borrow small amounts through the bond market and large amounts through banks.

Answer 2

I suppose it would be possible for a small company to do that, probably with Mezzanine debt to private investors. Municipalites do small issuses like that all the time, but it seems kind of small for a corporate bond issue.