Problem:
Bonds are kind of a "big company" tool for borrowing. It takes a lot of time to prepare a bond issuance and there are a lot more costs compared to borrowing with notes. Most often the rate is set far in advance of when the bonds are actually issued. I worked on a $125 million bond issue and it took about 4 months to prepare the prospectus and market the bonds, So why would companies choose to raise money with bonds vs. notes?