Prudential Private Capital is a leading source of private debt for public and private companies and is the private capital arm of PGIM


Prudential Private Capital invests in the Dayton Power & Light Company. (Credit: Th G from Pixabay)

Prudential Private Capital provided $140m 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 (PRU).

“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.”



Source: Company Press Release