Prudential Private Capital provided $140 million of first mortgage bond financing to the Dayton Power & Light Company (“DP&L”), the wholly owned electric utility of parent company, AES, funding with execution certainty during the COVID-19 global pandemic. Prudential Private Capital is a leading source of private debt for public and private companies and is the private capital arm of PGIM, the $1.4 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
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Wendy Carlson, Managing Director and Head of Power Real Assets Group (Photo: Business Wire)
“Our investment with DP&L reinforces our commitment to investments in power and project finance,” said Wendy Carlson, managing director and head of Prudential Private Capital’s Power group.
“This investment in DP&L, especially during the unprecedented economic environment caused by the COVID-19 pandemic, also demonstrates our stable funding source with a long-term focus, broad capital capability and unwavering commitment to the productive relationship with a world-class organization such as AES,” added Parag Patel, vice president of Power.
“We have been impressed by the Prudential Private Capital team’s support and understanding of our regulated utility and contracted independent power producer businesses and related capital needs. Their ability to swiftly move to a close within three months of the initial discussion for DP&L was a testament to the strong relationship we have built over the years, and their varied investments with us illustrates their broad interest and expertise in traditional utilities and project finance,” said Gustavo Garavaglia, chief financial officer, AES United States.
Relationship highlights:
- DP&L – $140 million investment in first mortgage bonds (bilateral transaction).
- AES Southland – $175 million investment in 2017 for a repowering of two Combined Cycle Gas Turbines plus two battery storage projects (lead institutional investor).
- AES U.S. Wind Generation – $130 million fixed- and floating-rate capital investments in 2016 refinancing a renewable portfolio of three operating wind projects (bilateral transaction).
- AES Buffalo Gap – $105 million tax-equity investments in 2006 (agented transactions).
- Ability to work bilaterally or through company appointed placement agents.
Said Carlson, “Our power and project finance transactions like the one with Dayton Power & Light is just one example of the investments our Real Assets group manages with over $26.5 billion AUM.1”
About Prudential Private Capital
For more than 75 years, Prudential Private Capital has been partnering with a wide range of corporations, sponsors, and institutions to provide valuable insights, guidance, and customized capital solutions that enable them to achieve their growth and funding goals. In an industry where capital can seem like a commodity and relationships are often fleeting and transactional, we are known for building enduring local partnerships based on a steady and patient commitment to our partners’ long-term capital needs. With regional teams in 14 offices around the world, we manage a portfolio of $96.5 billion as of June 30, 2020.
About PGIM
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world2 with more than $1.4 trillion in assets under management as of March 31, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (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.
About Prudential
Prudential Financial, Inc. (NYSE: PRU), a financial wellness leader and premier active global investment manager with more than $1.5 trillion in assets under management as of June 30, 2020, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help to make lives better by creating financial opportunity for more people. Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.
1 AUM as of June 30, 2020.
2 PFI is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020.
Learn about Prudential Private Capital: prudentialprivatecapital.com
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