Senior Debt Capital
Key concepts and philosophies:
- The Project must be in-league with creditworthy buyers/offtakers (defined as “S&P Rated” and/or Fortune 1000 or equivalent companies). In other words, if the offtaker is a publicly traded then its rating should be BBB or better.
- The Project must be able to handle repayment of $100MM or as required. Projects seeking under $100MM are considered on a case-by-case basis, but not less than $50MM.
- There is a longstanding closing history with the "QIB" (Qualified Institutional Buyer). This relationship allows for more successful project closings, unlike most bond offerings which go on the open market without the superior advantage of knowing the exit investor ahead of time.
- The QIB prefers renewable and green energy projects. However, other projects will be considered if they are unusually strong.
- This is debt financing. Therefore, in most cases, no equity participation will be required, leaving qualified projects in a position of majority control and ownership.
- Projects seeking $100MM that do not have the ability to fulfill the associated service retainer costs may seek outside investment. Alternatively, Carbonwolf Energy can bridge ("Link Capital") or syndicate this gap. However, equity participation and other fees may apply.
- The capital formation process will take in to consideration the project's capital model; due diligence criteria; credit and political risk evaluation; completion insurance criteria; and Institutional Investor Criteria: SEC Rule 144A
Does your Project have what it takes? Contact Us.