When a PGIM Private Shelf facility is established, PGIM obtains full credit committee approval and legal documentation including facility borrowing capacity, duration of the facility, and terms and conditions of future shelf draws is completed up-front to enable a fast and efficient drawdown process at the point in which the borrower wants to draw funds. Rate indications can be provided frequently upon request and a draw request can be made at any point during the life of the Shelf. Following a draw request, the economics of the issuance is set shortly thereafter (typically within days) with funds available to be delivered within weeks, allowing borrowers to take advantage of opportunistic funding opportunities and/or favourable rate movements.

Given their flexibility, Shelf facilities are often established prior to any financing need, however, borrowers can also elect for an initial draw at close. As our Shelf facilities are uncommitted, there are no commitment or draw fees, however, we charge an initial shelf structuring fee which can be waived subject to an initial issuance. Since 1989, we have provided over 1,300 Shelf facilities globally to a broad range of businesses and institutions.

Fast and Efficient Access

• Terms and conditions of shelf draws negotiated and documented when facility is established
• Rate indications provided frequently (upon issuer’s request)
• Coupon able to be set shortly after draw request (typically within 5-7days)
• Ability to draw capital when needed and funds delivered shortly after draw request (typically 2 weeks) or with delayed funding (up to 12 months)
   

Flexible Structure and Terms

• Ability to choose payment terms for each draw –customised amortisation schedule, maturity, currency, etc.
• Multiple draw capabilities –interest rate averaging vs. timing the market; customised debt to meet issuer’s operating objectives
• Draws can be funded in most major currencies on a “natural” basis
   

Competitive Set-up and All-in Costs

• Competitive pricing when draws are requested
• No facility usage fees or unused commitment fees
• No agent fee
• Low structuring fee payable only when the Shelf is established