Debt Private Placements

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 DTE Gas Company, a subsidiary of DTE Energy Company. DTE Gas is a natural gas utility that engages in the purchase, storage, transmission, gathering, distribution, and sale of natural gas in Michigan. The company issued $50 million of 3.640% First Mortgage Bonds due 2023, $70 million of 3.740% First Mortgage Bonds due 2025, and $50 million of 3.940% First Mortgage Bonds due 2028 with spreads of T+100 bps, T+110 bps and T+130 bps, respectively. This represents the second transaction in the last 12 months on which KeyBanc Capital Markets acted as Lead Placement Agent for DTE Gas (formerly known as Michigan Consolidated Gas Company). KeyBanc Capital Markets placed $145 million (85%) of the $170 million transaction, placing bonds with 5 of the 6 investors.
  • In November 2013, KeyBanc Capital Markets acted as Sole Placement Agent for Green Mountain Power Corp and Vermont Gas Systems, Inc., both owned by Gaz Métro Inc. Green Mountain Power issued $12 million of 4.07% First Mortgage Bonds due 2029, $20 million of 4.39% First Mortgage Bonds due 2034 and $43 million of 4.89% First Mortgage Bonds due 2043. The notes priced at a spread of T+105 bps, T+110 bps and T+105 bps, respectively. Vermont Gas Systems issued $35 million of Senior Notes maturing on January 30, 2044. The notes priced at a spread of T+130 bps.

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.