Darby Overseas Investments, Ltd., the private equity arm of Franklin Templeton Investments, provided a US$33.5m senior secured convertible loan to PECH Holdings LLC, the holding vehicle of Prestolite Electric Beijing Ltd., which is the China-based operating joint venture controlled by Plymouth, Michigan-based Prestolite Electric Incorporated.
Proceeds from the transaction, which was made through the Darby Asia Mezzanine Fund II, were used by Prestolite for corporate purposes.
Founded in 2001 and based in the Tongzhou District, an eastern suburb of Beijing, Prestolite Electric Beijing offers the broadest line of heavy-duty alternators in China, and is the largest supplier of alternators to both the Chinese bus and truck markets.
In addition to starter motors and alternators, Prestolite Electric also supplies related component parts, including regulators, armatures, rotors, and shafts.
Prestolite is a major global manufacturer of alternators and starter motors sold in the medium- and heavy-duty vehicle, military, and industrial markets with operations in North America, South America, Europe, and Asia.
The company is primarily owned by a fund managed by First Atlantic Capital, Ltd., a New York based private equity firm.