StoneCastle Securities

Partnership | Expertise | Experience

Who We Are

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 works with the largest institutional investors in the private placement market.

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 is between $50 billion and $60 billion*
  • Typical transaction sizes range from $250 – $500 million with a handful of new issues topping $1 billion

Role in Debt Capital Markets

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 90% of the securities in the investment-grade category, designated NAIC-1 or NAIC-2*

NAIC 12/30/2015

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

U.S. Private Placement Market

  • Traditional Private Placements

    •  Secured, senior unsecured, and other corporate credit
    •  Credit Tenant Leases, Project Bonds (power, toll road, pipeline, other)
    •  Equipment Trust Certificates (aircraft, rail, ship, other)
    •  Less-liquid and illiquid municipal securities
    •  Bank loans

  • Broad Range of Structures

    •  Zero to full coupon bonds
    •  Leases
    •  Trust certificates
    •  Credit linked notes

  • Other Securities

    •  European corporates
    •  Emerging market corporates
    •  Less-liquid and illiquid 144As


Esoteric Credit Trading
  • Scott Best
    Scott Best
    Managing Director
  • Matthew Faranda
    Matthew Faranda
    Managing Director
  • Lawrence Taylor
    Lawrence Taylor
    Managing Director
  • Richard Lopez
    Richard Lopez
    Senior Vice President
  • Jamie Brownback
    Jamie Brownback
  • Stacey Breaks
    Stacey Breaks
    Vice President
  • Shawn Clegg
    Shawn Clegg
    Trading Assistant
Management and Operations
  • Robert Holmen
    Robert Holmen
  • Shannon Jemmoth
    Shannon Jemmoth
    Managing Director
  • Xiomara Larios
    Xiomara Larios
    Vice President & Senior Compliance Analyst