Prudential Capital Group




Unregistered debt or equity securities negotiated between an issuer and a limited number of investors, private placements often provide capital for a company’s strategic plans and commonly take the form of long-term, fixed-rate debt.

Structural Characteristics
No exchange listing, active trading, SEC registration or public disclosure
Pricing similar to public security at a spread over current U.S. Treasuries
Senior debt, subordinated debt, structured finance and foreign currency options (secured or unsecured)
Flexible payment structure
  Amortizing or bullet
  Fixed or floating rate
Medium- to long-term maturity, from three to 25+ years
Complement to bank facility

Typical Size
$10 million - $300 million

Typical Uses
Many companies, both public and private, issue in the private placement market for:
Debt refinancing
Expansion/Growth capital
Acquisitions
Stock buyback/Recapitalization
Going-private transactions
   
 
Issuer Benefits
Advantages relative to bank financing:
Diversity of capital providers
Tenor of financing commitments
  Longer maturities
  Fixed interest rate

Advantages relative to issuing in public markets:
Attractive economics, particularly for private placements less than $500 million
Size and depth of market
Tailored transactions
Limited disclosure
No requirement for rating agencies
All-in costs
Quick and efficient execution



Privacy  |  Terms and Conditions

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