Public Market Securities

Better Terms and Better Rates

Public senior and subordinated bonds are often the best term debt source for a publicly traded borrower. An underwritten bond issue reduces refinancing risk, helps near term cash flow, and matches asset lives to liability terms and can increase bank financing availability. PNC will work with you to determine if a public transaction is your smartest option. Public debt issues are often the right choice for:

• Transaction of $200 million or more ($100 million or more for REITs or certain High Yield issuers)
• Companies with public ratings or those intending to get one
• Companies that are or intend to be publicly reporting.

More Flexibility and Lower Coupons

Instruments combining features of equity and debt may be the right solution for issuers, especially when trying to improve financial or regulatory capital ratios or when the coupon cost of straight senior or subordinated debt is too high. This can also be true of an issuer whose equity is broadly considered by the markets to have strong upside potential.

Save On Interest and Drive Growth

Tax exempt industrial revenue bonds are a good option for for-profit companies seeking to fund certain manufacturing, port and solid waste disposal facilities and capital investment in special areas such as the Liberty Zone and GO Zone. PNC is a nationally recognized leading issuer, with transactions completed in sizes from $2 million to $200 million. Term fixed and floating rate debt, direct credit and credit-enhanced structures are available in the private placement and capital markets; in some cases with maturities of over 30 years. A borrower can save as much as 3.0% interest per year on qualified bonds versus conventional financing. For projects that do not qualify for tax-exempt bonds, a borrower can issue taxable variable rate debt, like Tarpaper^® that can be frequently be combined with local and state tax benefits.