When securities are being offered to the public for the first time, they are called new issues. If the new issue represents additional securities issued by a corporation that is already public, it is referred to as a primary offering or primary distribution. Back to Top Private Offerings Private Equity Mezzanine or Subordinate Debt Financing When an entity wishes to raise money by issuing securities, it will usually employ the services of an investment banker and go through the underwriting process. Regulation D. A private placement is a type of issue which is sold by the issuer directly to investors without the use of an underwriter. The size of the issue is not limited, but its sale is limited to a maximum of thirty-five nonaccredited investors.
Mezzanine financing is a crossover between secured debt and full equity position.
A merger is the combination of two or more corporations in which greater efficiency is supposed to be achieved by the elimination of duplicate plant, equipment, and staff, and the reallocation of capital assets to increase sales and profits in the enlarged company. An acquisition is the acquiring of control of one corporation by another. The management of the target company might ask for a better price or try to join with a third company to foil the takeover attempt.