Club Transaction & Syndication

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, recapitalisations, 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
  • US$100 million - US$500 million
  • Anchor commitments of US$75 million - US$200 million
Typical uses
  • Acquisitions
  • Leveraged buyouts
  • Management buyouts
  • Stock buyback
  • Recapitalisation
  • 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 amortisation 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 utilises 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 Pricoa 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 US$150 million out of the US$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
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Pricoa Private Capital (‘PPC’) is a trading name of PGIM, Inc. (‘PGIM’), the principal asset management business of Prudential Financial, Inc. ('PFI'). Pricoa Private Capital registered in Ireland as PGIM Private Capital (Ireland) Limited, Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. Registered in Ireland under company number: 635793. Authorised and Regulated by the Central Bank of Ireland. In the United Kingdom (UK), and various other jurisdictions in Europe, certain investment activities are undertaken by PGIM Private Capital Limited, authorised and regulated by the Financial Conduct Authority, (registration number 172071). PGIM Private Capital Limited is registered in England No. 1331817. The registered office is Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR. PPC, Pricoa, PGIM and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. PFI of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.

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