Presentation is loading. Please wait.

Presentation is loading. Please wait.

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH.

Published byLaurence Beasley Modified over 8 years ago

Similar presentations

Presentation on theme: "FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH."— Presentation transcript:

1

2 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH USG: Developer creates special purpose entity (SPE) SPE responds to USG request for proposal (RFP) with respect to power purchase agreement (PPA) and land lease USG awards land lease and PPA pursuant to competitive bids Key underwriting hurdles include the following –Project level debt ( Stand still provisions, Termination for convenience, etc.) Basic Partnership Flip Structure Basic Lease Pass-Through Structure Sale Leaseback Structure

3 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 3 Basic Partnership Flip Structure Project Sponsor Limited Partner (Tax Equity Investor) SPE OpCo (Owns and operates facility) EPC Developer Power Buyer (USG) Partnerships for federal income tax purposes Tax paying entities Denotes an ownership interest Cash flows from non-owners Ground Lessor (USG)

4 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 4 Basic Lease Pass-Through Structure Developer Project Sponsor Limited Partner (Tax Equity Investor) SPE “OwnCo” “Depreciation Entity” SPE “OpCo” “Tax Credit Entity” Partnerships for federal income tax purposes Tax paying entities Denotes an ownership interest Cash flows from non-owners Power Buyer (USG) Ground Lessor (USG)

5 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 5 Sale Leaseback Structure Investor SPE - Single Member LLC (Lessee ) Single Member LLC (Lessor) SPE OpCo SPE OpCo $ Lease Agreement Lease Payments Ground Lessor and Power Buyer (USG) Power PPA/Lease Payments Lease Agreement Project Sponsor $ 100% interest Constructed Project Purchase & Sale Agreement

6 FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 6 Contact Information Tony Grappone Novogradac & Company LLP 101 Arch Street, 10 th Floor Boston, MA 02110 Tel: 617.449.3030 Fax: 617.330.1922 Tony.Grappone@novoco.com www.novoco.com

Download ppt "FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH."

Similar presentations

Financial Leverage and Financing Alternatives

Financial Leverage and Financing Alternatives
Special Issues for Projects Involving Nonprofits IPED Housing Tax Credits 101 February 22-23, 2007 Molly R. Bryson Thomas A. Giblin.

Special Issues for Projects Involving Nonprofits IPED Housing Tax Credits 101 February 22-23, 2007 Molly R. Bryson Thomas A. Giblin.
PRODUCTION TAX CREDIT BASICS

PRODUCTION TAX CREDIT BASICS
Michael J. Goldman, Esq. Donald Nimey, CFA, FRM Daniel J. Smith, CPA.

Michael J. Goldman, Esq. Donald Nimey, CFA, FRM Daniel J. Smith, CPA.
How Credits Become Capital: When and How to Syndicate Incentives for Historic Preservation in Detroit Thursday, June 5, 2008 The Detroit Athletic Club.

How Credits Become Capital: When and How to Syndicate Incentives for Historic Preservation in Detroit Thursday, June 5, 2008 The Detroit Athletic Club.
USING THE PRODUCTION TAX CREDIT James F. Duffy, Esquire Nixon Peabody LLP 100 Summer Street Boston, MA 02110-2131 (617) 345-1129 (866) 947-1697 (fax)

USING THE PRODUCTION TAX CREDIT James F. Duffy, Esquire Nixon Peabody LLP 100 Summer Street Boston, MA (617) (866) (fax)
Historic Tax Credit Equity Syndication Basics Historic Tax Credit Developers Conference Thursday, February 5, 2009 Miami Beach, Florida.

Historic Tax Credit Equity Syndication Basics Historic Tax Credit Developers Conference Thursday, February 5, 2009 Miami Beach, Florida.
Turning Your Tax Credits into Cash Iped Tax Credits 101, October 16, 2008 Presenter: Gayle Manganello Ellis, PNC MultiFamily Capital.

Turning Your Tax Credits into Cash Iped Tax Credits 101, October 16, 2008 Presenter: Gayle Manganello Ellis, PNC MultiFamily Capital.

ACQUISITION/REHABILITATION: THE 50% ANTI-CHURNING RULE

ACQUISITION/REHABILITATION: THE 50% ANTI-CHURNING RULE
Understanding the Economics and Running the Numbers Why is it important to prepare a financial model? Who are the users of the financial model? When does.

Understanding the Economics and Running the Numbers Why is it important to prepare a financial model? Who are the users of the financial model? When does.
Syndication Leasing Structures How Tax Credits Become Capital: When and How to Syndicate Panel USING HISTORIC TAX CREDITS IN NEW YORK June 24, 2009.

Syndication Leasing Structures How Tax Credits Become Capital: When and How to Syndicate Panel USING HISTORIC TAX CREDITS IN NEW YORK June 24, 2009.
Introduction to PPP in the EU RCC PPP Conference, Sarajevo, 25 September 2009 Michael Burnett, Director, European PPP Forum, European Institute of Public.

Introduction to PPP in the EU RCC PPP Conference, Sarajevo, 25 September 2009 Michael Burnett, Director, European PPP Forum, European Institute of Public.
Tax Credits Vs. Cash Grants In Renewable Energy Deals Speakers Anita Molino – Bostonia Partners LLC Tony Grappone – Novogradac & Company LLP Moderator.

Tax Credits Vs. Cash Grants In Renewable Energy Deals Speakers Anita Molino – Bostonia Partners LLC Tony Grappone – Novogradac & Company LLP Moderator.
AN OVERVIEW OF PROJECT FINANCE IN PRIVATE-PUBLIC PARTNERSHIPS FINANCE 101 T ERRI S MALINSKY Managing Director 312 596 1582 B.C.

AN OVERVIEW OF PROJECT FINANCE IN PRIVATE-PUBLIC PARTNERSHIPS FINANCE 101 T ERRI S MALINSKY Managing Director B.C.
Restricted © Siemens AG 2013 All rights reserved.Answers for infrastructure and cities. “Shaking the Money Tree” Session B: Finance and Affordability Maryland.

Restricted © Siemens AG 2013 All rights reserved.Answers for infrastructure and cities. “Shaking the Money Tree” Session B: Finance and Affordability Maryland.
Risk and Return, Business Structures By R. S. Miolla.

Risk and Return, Business Structures By R. S. Miolla.
Tiger Leasing Leasing As A Closing Tool. What is a Lease? A lease is simply an agreement by a customer (Lessee) to pay a monthly rent for a specific amount.

Tiger Leasing Leasing As A Closing Tool. What is a Lease? A lease is simply an agreement by a customer (Lessee) to pay a monthly rent for a specific amount.
NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable.

NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable.
A Member of Erste Bank-Group and Sparkassen Real Estate Leasing in Romania Harald Trinkl / Vasile Cristescu Bucharest, October 19th, 2006 National Leasing.

A Member of Erste Bank-Group and Sparkassen Real Estate Leasing in Romania Harald Trinkl / Vasile Cristescu Bucharest, October 19th, 2006 National Leasing.

Similar presentations

Ads by Google