Jefferies Financial Group is trying to pull together as much as one point two billion dollars in new debt funding. The money would go to two companies that make equipment for the power industry. This move was shared by people who know about the talks.
The bank wants to raise around six hundred million dollars for Forgent Power Solutions. It also wants to raise another six hundred million dollars for Central Moloney. Both companies build important products used in the power sector.
Jefferies will meet with potential investors this week. The goal is to see how much interest there is in these deals. If the funding goes through, both companies will use the money to pay off their current loans, which are held by direct lenders.
One of the loans being discussed for Forgent may be priced at about three percentage points above the US benchmark rate. The possible loan for Central Moloney may be priced a little higher at around three point seven five percentage points.
Demand for power equipment is rising all over the world. A big reason is the rapid growth of artificial intelligence. AI needs massive amounts of electricity, which pushes companies and governments to invest more in power infrastructure.
Forgent makes electrical gear used in data centers. It owns brands like MGM Transformers and PwrQ. Central Moloney builds products such as transformers that support the US electric grid. Both companies are tied closely to the growing need for reliable energy systems, which is why Jefferies believes investor interest will be strong.