Prudential’s Merchant Banking Subsidiary Will Move to Dallas

Prudential Capital Corp., a merchant banking subsidiary of the Prudential Insurance Co., will move its oil and gas finance unit from Newark, N.J., to Dallas later this month, in anticipation of increased future business, the company announced Monday.

Five investment professionals specializing in oil and gas financing will move to Dallas by the end of August to join Prudential Capital’s Dallas office, which is staffed by four professionals responsible for general corporate finance business in Texas and surrounding states.

“We think there will be substantial opportunity in the oil and gas industry and in the Southwest in general over the next several years,” said Matthew J. Chanin, senior vice president in charge of Prudential Capital’s Southwestern operations.

He said that “the capital needs of energy companies are beginning to trend upward” and that “many traditional lenders to this industry are pulling back,” so Prudential Capital believes that “it’s a good time to reaffirm our commitment to this market.”

The oil and gas contingent in Dallas will be led by John T. McNabb II, who has been named a regional vice president. McNabb worked in Dallas in 1980-86 with Mobil Oil Corp., Lyco Energy Corp. and Prudential-Bache Securities.

During the past year, Prudential Capital’s Dallas and Houston offices have committed more than $500 million of financing for Southwestern companies and projects.

Total commitments in 1988 are expected to exceed $600 million.