Senior Debt

A Power in Private Placements

Prudential Capital Group places more deals in the private market than any other company in the world, allowing clients to leverage Prudential’s market power to lock in long-term, fixed-rate capital through all cycles.

Delivering Advantages over Public Markets and Bank Financing

Private Placements present advantages over issuing to the public markets or negotiating bank funding, while providing capital with attractive economics, particularly for placements below $500 million. The market’s size and depth generally means a quick, efficient execution, and private placements limit disclosure requirements found in the public market. Private Placements provide longer maturities than bank financing at a fixed interest rate, and help diversify a company’s capital provider portfolio.

Structural Characteristics

  • No exchange listing, active trading SEC registration or public disclosure
  • Priced similarly to public security at spread over current U.S. Treasuries
  • Negotiated privately with limited number of investors, typically, “buy-and-hold” investors
  • Complements bank facility

Investment Focus / Payment Structures

  • Typical size: $10 million to $300 million
  • Typical maturities: three to 25+ years
  • Flexible payment structures including amortizing or bullet, and fixed or floating rate

Forms and Pricing

  • Senior debt, subordinated debt, structured finance and foreign currency options
  • Secured or unsecured

Typical Uses

  • Debt refinancing
  • Expansion / Growth capital
  • Acquisitions
  • Stock Buyback / Recapitalization
  • Going private transactions