StoneCastle Securities

StoneCastle Securities is a FINRA registered
broker-dealer with primary activities in debt and equity private placement, and fixed income institutional sales and trading. Our focus is on the U.S. private placement market where StoneCastle’s esoteric credit team has deep market experience and is highly regarded by institutional investors.

Debt Private
Placements
  • Alternative to public debt instruments for both issuers and investors
  • Issued under Rule 506 of Regulation D of the Securities Act of 1933, considered the “safe harbor” provision and/or Rule 144a
  • Average annual private placement issuance has been over $90 billion*
  • Typical transaction sizes range from $250 – $500 million with a handful of new issues topping $1 billion

Role in Debt Capital Markets

Issuers
What type of companies choose to access the US Private Placement (USPP) Market?
  • Both rated and unrated, public and private companies, foreign and domestic
  • Alternative source of liquidity from the traditional bank market (long-term, fixed rate) without the need for a formal credit rating and reporting requirements, which are a pre-requisite of the public bond markets
  • Diversified capital sources, confidentiality, tax, and operational efficiencies
  • Credit quality of USPP issuers is very high, with over 90% of the securities in the investment-grade category, designated NAIC-1 or NAIC-2*
*The Private Placement Monitor 12/31/20
Investors
Issuers
Life Insurers are the predominant investors in the market
  • The life insurance business model is to match assets and liabilities (ALM) within tight tolerance limits
  • Incremental yield, favorable structural protections (covenants), and enhanced credit diversification for investors
Issuers
What type of companies choose to access the US Private Placement (USPP) Market?
  • Both rated and unrated, public and private companies, foreign and domestic
  • Alternative source of liquidity from the traditional bank market (long-term, fixed rate) without the need for a formal credit rating and reporting requirements, which are a pre-requisite of the public bond markets
  • Diversified capital sources, confidentiality, tax, and operational efficiencies
  • Credit quality of USPP issuers is very high, with over 90% of the securities in the investment-grade category, designated NAIC-1 or NAIC-2*
Investors
Life Insurers are the predominant investors in the market
  • The life insurance business model is to match assets and liabilities (ALM) within tight tolerance limits
  • Incremental yield, favorable structural protections (covenants), and enhanced credit diversification for investors

Issuers


Investors

What type of companies choose to access the US Private Placement (USPP) Market?
  • Both rated and unrated, public and private companies, foreign and domestic
  • Alternative source of liquidity from the traditional bank market (long-term, fixed rate) without the need for a formal credit rating and reporting requirements, which are a pre-requisite of the public bond markets
  • Diversified capital sources, confidentiality, tax, and operational efficiencies
  • Credit quality of USPP issuers is very high, with over 90% of the securities in the investment-grade category, designated NAIC-1 or NAIC-2*
*The Private Placement Monitor 12/31/20

U.S. Private Placement Market

Traditional Private Placements

  • Secured, senior unsecured, and other corporate credit
  • Infrastructure and Project Finance (renewables, toll road, pipeline, other)
  • Credit Tenant Leases (fully amortizing and balloon notes)
  • Equipment Trust Certificates (aircraft, rail, ship, other)
  • Taxable municipal securities
  • Bank loans

Broad Range
of Structures

  • Leases and pass-through notes
  • Trust certificates
  • Credit linked notes

Other
Securities

  • European corporates, both dollar and non-dollar
  • Emerging market corporates
  • Less-liquid and illiquid 144As

Team

Esoteric Credit Trading

Scott Best
Managing Director
Matthew Faranda
Managing Director
Lawrence Taylor
Managing Director
Richard Lopez
Managing Director
Jamie Brownback
Associate
Joseph Caradimitropoulo
Analyst
Stacey Breaks
Vice President
Shawn Clegg
Vice President

Scott Best

Managing Director

Matthew Faranda

Managing Director

Lawrence Taylor

Managing Director

Richard Lopez

Managing Director

Jamie Brownback

Associate

Joseph Caradimitropoulo

Analyst

Stacey Breaks

Vice President

Shawn Clegg

Trading Assistant

Management and Operations

Robert Holmen
President
Shannon Jemmoth
Managing Director
Xiomara Larios
Vice President & Senior Compliance Analyst

Robert Holmen

President

Shannon Jemmoth

Managing Director

Xiomara Larios

Vice President & Senior Compliance Analyst