Project Financing

 

Getting You the Capital You Need

Our Primary Goal is to work with you to assist you in getting the funding you need for your next project. One of our primary ways of providing funds is through the use of a funding mechanism known as:

Contract Monetization

Contract Monetization can be utilized when you have an Obligor( also known as the Guarantor)of a project who is willing to guarantee the funding Unconditionally. They need to have an investment grade rating of BBB or better. When we discuss your project I can go into greater detail about the specifics, but here are some general bullet points:

  • Funds requested must be $5,000,000+ (No upper limit)
  • BBB or better Investment Grade Entity (private transations can be looked at)
  • Payment Deferrals up to 7 years
  • Repayment Terms to 25 years
  • No Equity Position Required from Investor
  • All Industries Considered
  • No Fees

Those are just some of the highlights of this type of financing. Once throughly explained to those involved, they will end up loving its structure.

For more information visit Monetization Financing for more details.

We can also provide other Creative Project Financing. It would be best to provide an Executive Summary of your project to us so that we can see if can assist you.


Monetization: Best Way To Fund Projects Today

 

Decidedly Different — Can be Tailored For All Project Financing


If funding a current project has become a road block you may want to take a closer look at Contract Monetization.

This funding mechanism is flexible to adapt to your funding needs. What we need is a strong commitment from an Investment Grade Entity (BBB or better) to be the backstop for the payments.

This type of funding will work for Municipalities and Corporations alike. The loan is non-recourse to the developer and can be structured as a Service Agreement so that the loan is treated as a business expense (much like an equipment lease) so that it can remain off the books as debt.

 

Designed With Your Business in Mind

 

Here’s an example:

Let’s say you need $50,000,000 to build a Waste-to-Energy facility for a large city named Gotham. Gotham has a decent “A” credit rating and would qualify. Gotham is also willing to sign a Tipping Fee Agreement that locks in their expenses on their waste disposal problem for the next 7 years @ $50 a ton. This is well below the $75 a ton they are being charged at present and it seems to rise at every contract renewal due to the service provider running out of landfill space. A Real Problem.

Let’s also assume that your plant will process 500 tons per day and you are running 360 days a year. You would generate $9,000,000 a year in revenue just from the Tipping Fee Agreement. This is what we would Monetize.

In this example, you will need $50MM to build the plant. You also need a 12 month deferral on the payments until the plant is up and running. In this scenario your payments would be $415,000 a month for 20 years using a rate of 7%.

If Gotham continued to pay $75 a ton for removal the city would be saving $375,000 a month immediately or $4.5 Million in the first year. And that doesn’t take into account the increases they would endure from their current provider.

The city can also benefit from sharing the profits from any ancillary products that may be produced by the plant.

For example, any recyclables, production of electricity, production of diesel fuel, all depending on what the plant in structured to produce from the waste. That could also add another $1MM or more to the city’s coffers. And what city couldn’t use additional revenue to bring their budget back in line. And this would be only one way that this type of financing could be used.

As for the municipality, Contract Monetization is considered a Private Placement and will not show them taking on additional debt. The only thing they have to do is Guarantee the payments which they would be making already to someone else at a much higher rate.

Remember that is only an example and your situation may be way different, but this financing is very flexible and adaptable to your situation.

Funding can happen quickly if all parties are in agreement with the language in the contract (usually 30 to 45 days — but can be quicker). If the Obligor to the contract has concerns, insurance and/or bond guarantees can be put in place to relieve any undue concerns
they may have.

Let’s talk when you get an opportunity to discuss how Monetization can fund your projects today.

Call Rob @ 303-521-7622

Industries Where Monetization Financing is Working:

Waste Management, Water Purification, Green Energy (PPA’s), Recycling,Medical, Waste-to-Energy Facilities, Retail Centers, Wind and Solar Projects, Communications, Oil and Gas, Entertainment, Waste Water Treatment Plants, Banking, Food Processing, Legal, Naming Rights, Deferred Compensation , Education, Municipal, Energy Savings Contracts, Real Estate and Project Funding for Cities and Counties, Funding for Government Programs and Projects, License Agreements, Service and Supply Agreements, Acquisitions, Equipment Purchase, Industrial, Manufacturing, Transportation…

 

Almost any industry can be approved!




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