Debt Private Placements

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Private debt placements can meet debt financing needs that are not a good fit for the wider capital markets, such as the lack of long-term ratings, smaller deal sizes and private company issuance. KeyBanc Capital Markets senior team members have the relationships and experience to structure and execute a variety of private placement structures, including mezzanine debt. Additionally our bankers actively connect borrowers with debt-side investors on a regular basis after listening carefully to your company’s needs.

Our network of investors includes banks, insurance companies, investment firms and pension funds.

KeyBanc Capital Markets has helped companies place debt through private syndication for multiple needs ranging from capital expenditures to M&A. Recent successes include:

  • KeyBanc Capital Markets acted as Joint Lead Placement Agent for Kentucky Power, a subsidiary of American Electric Power. Kentucky Power is an electric utility company headquartered in Ashland, Kentucky. The company owns 1,860 MW of 100% coal fired generating capacity with a peak load of 1,409 MW in 2013, and operates 11,159 circuit miles of transmission and distribution lines. It serves 172,000 retail customers in eastern Kentucky, and supplies and markets electric power at wholesale to other electric utility companies, municipalities, and other market participants. The company issued $120 million of 4.180% Senior Notes due September 2026 and $80 million of 4.330% Senior Notes due December 2026. The 4.18% Notes included a 3-month delayed draw and the 4.33% Notes included a 6-month delayed draw.

Our senior team leaders can offer advice on the best structures for your private debt placements, then connect borrowers with private debt buyers. We offer a wide range of debt products, with maturity dates ranging from three to 30 years, including:

  • Mezzanine debt
  • Senior secured notes
  • Junior secured notes
  • Senior unsecured notes
  • Subordinated notes
  • Credit-tenant leases (CTLs)

Typically, our debt private placement investors are seeking opportunities which afford them larger allocations, alternative maturities and more structure then can be found in the public market. They will invest in unrated securities and smaller deal sizes.

Private debt investors typically have very specific credit, return, geographic and industry sector profiles. We get to know your requirements and bring deals that make sense. We work regularly with financial institutions seeking investment opportunities as well as institutional investors such as insurance companies, hedge funds and certain private investment groups.