The main difference between direct private long-term debt financing and public issues of debt is that direct placements are less likely to have restrictive covenants.

Direct Private Long-term Debt Financing

A funding method where businesses borrow money directly from private investors, bypassing traditional bank loans, usually for a period longer than one year.

Public Issues

The offering of securities by a company to the public in order to raise capital.

Restrictive Covenants

Clauses in a contract that place limitations on the actions of parties involved, often used in real estate and employment agreements.