PNC Shifts Private Placement Deck –

PITTSBURGH – In a move that signals a victory for advocates of increased specialization, PNC Capital Markets has split its private placement group into a pair of distinct operating teams. The first group, directed by Larry Deihle, will be involved in mezzanine debt and private equity, while the second squad, headed by Bill Weil, will handle traditional private placements and credit tenant financing.

Deihle is a newcomer to the scene, having spent the past several years immersed in loan syndications. Weil, on the other hand, is a private placement veteran who has completed more than 100 transactions for PNC since his arrival from Mellon Bank in 1996. Both men will report directly to Doug Shaffer, senior vice president and managing director.

Activities Remain Unchanged

In an internal memorandum circulated in August, Shaffer wrote, “The purpose of the reorganization is to better align the different private placement products with the needs of the corporate bank and the secured finance client base and to provide the relationship managers with the appropriate product specialist within the Private Placement Group.” He continued, “the anticipated result of the new organizational structure will be increased fee income potential with greater referral volume.”

A source within the company added that the shake-up is not intended to lead to a change in the company’s activities. The mezzanine and private equity division will maintain its relatively even split between buyout transactions and debt deals. The traditional privates, meanwhile, will continue to concentrate on story-type issuers with low to high triple-B credit ratings.