Clubbing & Placement

We play well with others.

We’re usually able to provide all of the capital a business needs; but sometimes, a transaction is too large for us to finance on our own. When that happens, our Clubbing & Placement group swoops in with the expertise, institutional contacts, and proven track record to raise additional debt capital.

Whether for growth, acquisitions, recapitalizations, or buyouts, we can provide a large anchor commitment and structure the entire financing need with institutional partners. In addition, various forms of capital can be provided, such as investment grade, below investment grade, secured, unsecured, fixed, or floating.

Typical size

$100 million - $500 million
Anchor commitments of $75 million - $200 million

Typical uses

Acquisitions
Leveraged buyouts
Management buyouts
Stock buyback
Recapitalization
Growth and expansion capital
Generalist sector approach
Discreet asset financing

Structural characteristics

Investment grade: long-term, fixed-rate debt
Below investment grade: long-term, fixed-rate debt or shorter term, floating-rate debt
Maturities of 5 to 20 + years with custom amortization schedules

Issuer benefits

Large anchor commitment de-risks execution
Access to institutional contacts
Small relationship-focused investor group
Avoid expense and time of larger auction process
One-stop-shop capability
Senior debt + subordinated debt combination
No agency rating requirement
Quick and efficient execution
Competitive market yields
Proven track record

PARTNER STORY

Algonquin Gas Transmission, LLC

Natural gas transporter utilizes a club issuance to fund growth and small shareholder dividend

Calgary, Alberta-based Algonquin Gas Transmission, LLC is a Canadian transporter of natural gas on behalf of local distribution companies through its approximately 250 mile pipeline network in New Jersey and southern New England.

We first began working with Algonquin in 1992, and we’ve been in close contact ever since. In spring of 2019, they informed us of an interest in borrowing capital for growth and a small shareholder dividend. The problem? Their existing investors couldn’t provide all of the capital they needed. The solution? A Prudential Private Capital-led club issuance.

Algonquin considered going through an agented process, or arranging a self-clubbed transaction. But thanks to the trust and close relationship built between us, along with the ease and certainty of execution they were used to when working together with us, they ultimately determined that we should take the lead on club issuance.

We were able to provide them with the largest anchor investment of $150 million out of the $500 million club issuance. Our Clubbing & Placement group structured and documented the transaction, introducing Algonquin to an additional investor who mirrored our mutual relationship-focused values.

Thanks to teamwork, we were able to help Algonquin source and raise the capital needed to meet their goals and objectives.

our people

We complement – not compete.

“We always strive to do what’s best for our partners. When introducing outside investors, we ensure that it is a good fit value-wise.”

LOURENCO NORTON DE MATOS

senior VICE PRESIDENT
Clubbing & Placement

Meet the team

Lourenco de Matos

Senior Vice President

+1.404.870.3747

CLUBBING & PLACEMENT

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Clubbing & Placement

We complement – not compete.

Meet the team

We share what we know

Contact Us