When traditional lending options failed we can help with a more cost effective and efficient capitalization. The concept behind the structure is to improve the performance of traditional components (equity, mezzanine, construction, permanent), in order to obtain a single facility that bears a resemblance to both the equity and debt components, with an optimization of benefits for both the lender and the borrower.
Basic Model (Preferred Equity):
- Financing 30Million+ (USD)
- Domestic & International
- 100% LTC (Loan to Cost)
- 75% LTV (Value determined as completed valuation)
- Rate: LIBOR +2
- All mobilization costs rolled into the loan
- 20% to 30% Participation by Lender
- Extension: 20 year amortization, five year term, at LIBOR+ (Can vary on case by case basis)
- No pre-sales requirements
- No Payments during the construction period. Interest payments rolled into the note.
- Development team must have successful background with similar projects of size and type.
- Must have viable, strong exit strategy.
- Non recourse loan
Equity Model:
- FINANCING: 20 million+ (USD)
- BOTH DOMESTIC & INTERNATIONAL (same terms)
- MAXIMUM LOAN TO COST: 100%, so long as the costs are verifiable, articulated and within the Maximum Loan to Value, as articulated below. Cost component includes land acquisition, development soft and hard costs, construction soft and hard costs, fees, closing costs, etc.
- MAXIMUM LOAN TO VALUE: 75%. Value component is based on “as completed” retail value of project, determined by an “as completed” appraisal prior to closing.
- INTEREST: No interest is charged as compensation for the loan. The Fund will take an equity position as compensation for the loan.
- TERM OF THE LOAN: The development/construction period or until stabilization. This component will be determined after formal underwriting.
- LENDER PARTICIPATION: 20% to 40% plus two seats on the board of a special purpose entity created for the sole purpose of holding the real estate. Due to this position, transaction exit fee and prepayment penalty have been waived.
- PRESALES: Presales are not required.
- FEES: Borrower is responsible for appraisal, lender fees, survey, and title, taxes, legal and insurance, however the amount can be paid out of loan proceeds.
Borrower must provide:
(1) Biographical/Curriculum Vitae: A history of the experience of the development team (including builder, engineers, architect, master planner, etc.).
(2) Sources and Uses: A detailed statement articulating the sources and uses of funds requested for Loan, including DHC's Fee.
(3) Draw Schedule: A detailed statement articulating the scheduled draws of funds required to finance Loan, including DHC's Fee as a part of the first draw.
(4) Market Feasibility/Exit Strategy: A description of the exit strategy planned for Project, and the documentation available to reinforce that said exit strategy is feasible.
(5) Pro Forma: A detailed statement articulating the expected value of Project at completion of construction.
(6) Risk Assessment and Management. Project specific risks that must be identified, analyzed and managed so that the project can come to its optimal completion. Please be as detailed a possible.
(7) Short Project Summary (Please fill this form out completely. Do NOT leave anything blank.
- Project Name:
- Today’s Date:
- (a) Critical Dates: Are there any critical dates which must be met for this project?
- (b) Contact Information for consultant/broker ( Name, Telephone, Email)
- (c) Loan Information:
Loan Type, please check one: ( Acquisition & Development, Development only, Acquisition & rehabilitation, Maritime)
Loan amount requested for total project:
Construction time frame:
Estimated as Complete Value:
- (d) Project description / summary:
- (e) Exit Strategy (Very important):
- (f) Property Information:
Property type:
City:
State and Country:
Purchase Price:
Borrower’s cash investment in this property to date:
Borrower’s current debt against this property:
Please give a breakdown of the project to the sum of 100% total
Commercial:
Residential: How many units total:
Other: Please explain other:
- (g) Development teams prior experience with this type of project:
- (h) Budget for Subject Property:
Gross Income:
Total Expenses:
Total estimated projected profits:
- (i) Draw schedule: (If you have a detailed monthly draw schedule please send it)
Please list your estimated first 3 draw amounts: (Very important)
Land cost or land option cost:
If land option how many months until balance is due:
Month 1 estimated draw:
Month 2 estimated draw:
Month 3 estimated draw:
- (j) Special Circumstances:
- (k) Borrower must provide at least 15% of total cost of project.
Super Jumbo Loans from 30 million (USD)
Borrowers ( residential property owned by a corporation) with high net worth. Purchase or refinance luxury home. This program is designed to cater those who have been shut out of the market due to the size of loan request. Residential properties (owned by a corporation) from 3.5 million EUR up to 30 million EUR. On a case by case basis we will consider larger. This is not a hard money program and the requirements are good credit and strong verifiable assets.
Super Jumbo Program
Purchase & Refinance
from 30 million USD
Rates from 5.99% to 6.99% as of current date
Fixed Rate loans, 3, 5, & 7 year Adjustable Rate Loans
Unlimited Cash Out
QUALIFICATIONS: - If you have strong assets, you will qualify!
Verified Proportionate Assets: Cash, Securities, etc..
REQUIRED DOCUMENTATION:
1. Tax Returns
2. Corporate and Personal Financial Statements
3. Appraisal
4. Credit
5. Fully Completed 1003 Application
Maritime Financing & Leasing.
Basic Model:
Financing 30 Million+ (USD)
Domestic & International
100% LTC (Loan to Cost)
75% LTV (Value determined as completed valuation)
Rate: LIBOR +2
All hard and soft costs rolled into the loan
20% to 30% Participation by Lender (with two seats on the board)
No Payments during the construction period. All payments are
rolled into the senior note.
*Terms are subject to change depending on the type of opportunity
Development Loan Checklist
A full loan package is required. Incomplete packages will not be submitted to Underwriting until all
documentation is delivered.
Required documents:
(1) Executive Summary / Loan Request. This should summarize the who, what, when, where, how, and why issues of the deal, the exit strategy, and who will handle the sale and marketing.
(2) Third Party MAI Appraisal. On construction development projects, an "as-completed" MAI appraisal will be needed prior to Underwriting showing the value of the completed project.
(3) Project Proformas. Statements needed include total project summary (hard costs, soft costs, contingency, income, projected net profit), monthly cash flow (showing debt balance), and initial draw breakdown.
(4) Architectural. We require color renderings, site plan, and elevations, full construction package (detailed cost breakdown, contract, Web address or architect's resume including projects completed.)
(5) Phase 1 Environmental. Other studies may be required: traffic impact analysis, feasibility study, geotechnical report, etc.
(6) Borrower (Guarantor) File. For each signing guarantor we must have: personal financial statement, real estate owned schedule, recent credit report (or borrower signature authorization including SSN and birthday), tax returns, and resume. If there are non-signing members of note we should get their resumes.
(7) Entity File. Articles of incorporation and certificate of good standing at a minimum. Resolution to borrow, financials, tax returns and bank statements.
(8) Color Digital Photos. It doesn't matter if it's raw land, we need a way to visually situate the property in its immediate environment.
(9) Purchase Contract and Addendums.
(10) Invested Funds Statement. Broken down.
(11) Sources and Uses Statement. If not in the Executive Summary / Loan Request document.
(12) Sales and Marketing Plan. If not contained in the Executive Summary / Loan Request, we need to know exactly how the property is going to be moved. This could include contracts with real companies, LOIs from prospective tenants or land tract buyers, LOIs from prospective property operators (marina, golf course, hotel, conference center, retail / commercial property managers, etc.) etc. This needs to be detailed and it definitely needs to be consistent with area sales standards (absorption rates, $/sq ft, etc.).
--- Concepts
. Definition of project finance
. The corporation vs. non-recourse debt analysis
. Participants and motivation
. History and evolution of project finance
. Iron ore mine and pipeline examples
. Basic project finance structure (Greenfield, privatization, expansion)
. The important of accounting conventions (take or pay throughout, keep well, consolidation) in project finance
. Description and examples
. Descriptive types of projects (including projects in the U.S., Europe and emerging markets)
. Examples over time
. How did projects employ the basic principles
. Lender checklist for a typical financing and what sponsors need to know about lenders
. Compare a U.S. case study to the checklist
--- The project finance process
. Beginning of project finance
. Typical time line (6 months to several years)
. Feasibility study and financial modeling
. Roles of the various players
. Risk sharing among the players; how much risk will the lenders accept
. Joint and several, offshore escrow, operating leases, sponsor limits
. Hedging of risks
. Reviewing multiple examples
. Considering the risks, benefits, structures and economics of multiple projects
. International airport
. International gas to power
. Toll road
. Water to power
. Mining project
--- Documentation, rating agencies, loan syndication
. Project documentation for a
. Project documentation for an existing (operating) project
. An outline of the many contracts involved
. The legal puzzle: fitting the contracts together
. Rating agencies' critical role
. Loan syndication (process and issues)
. Considerations for the default scenario
. Examples, case study and risks
. Emerging market
Green-field project
. Case study
. Term sheet example (30 pages plus)
. Project benefits from the viewpoint of the various players
. Political and currency risk
S U M M A R Y H E R E
PROJECT FINANCE: preferred industries are Real Estate, Energy & Mining. Other
industries are welcomed when supported by secured instruments or special sense and
profit potential. FUNDING PROGRAMS FOR WESTERN EUROPE, USA, CANADA AND INTERNATIONAL
PROJECTS.
WARNING: (PROJECT FINANCE ONE TO SIXTEEN ARE NOT AVAILABLE AT THE PRESENT TIME)
* All Funding Programs are subject to availability.
* The accuracy of all terms and conditions are subject to lenders’ final edition.
* Fees mentioned in funding programs below are related with funding source.
* More programs will be posted anytime when they become available.
* In case you are still not interested in any of these programs, our network of lenders/investors can still structure some alternative ways for your funding needs.
PROJECT FINANCE ONE: Large Private Investor $5M+. From 3 to 4 months. 100% LTV, 8-8.35% (US), 8.35-8.75% (International), loan term: 10-40 years. Fully Refundable Commitment fee if project does not fund in time outlined. Fee goes directly to funding source. Fee is $5,000 on most US based projects.
International projects fee is $8,500. No prepayment penalty. Preferred industry: real estate, energy, mining & secured instruments. Limitations on Casinos. Total closing costs: 6% or less. 2 to 5 days LOI for project with requested paperwork.
PROJECT FINANCE TWO: US Law & Financial Institution 10M+. The firm packages international finance. 6 to 10 months, 100% LTV, Interest: 4-6%, No principal repayment, loan term: 20 yrs. Upfront fee: $55K-100K after approval. No fee if project is not approved. 21-30 days to get LOI. 100% success rate.
PROJECT FINANCE THREE: 100% International Financing Mulit-Billions in Trust to fund international projects only (No US projects). No upfront fees of any kind!!! 100% of total project costs provided. Project minimum is $50M. All project types considered (casinos; power-plants; new construction; etc) Project must promise to yield a minimum ROI of 25%. Lender assumes a 30%, non-participatory ownership position in project. Funding is self-liquidating, which means there will be no loan balance and no debt service – project will be FREE and CLEAR after funded. No draw schedule, funded as a lump sum single payment.
All fees rolled into financing. May be available in limited time only.
PROJECT FINANCE FOUR: 2.5M Bank Leverage Program Min: $2.5M cash. Project amount: 40M+ preferred. By invitation only. 100% No Risk. 2.5M Proof of Fund is required to qualify. The leveraging bank will guarantee to return 2.5M original investment in 10 banking days. Funding in 21 to 30 days. A small upfront fee is required to pay program facilitator.
PROJECT FINANCE FIVE: Super Angel Network Program 10M+. About 400 European based investors.
JV Partnership. Must be pre-qualified by progam facilitator. Direct presentation of project to interested investor. Upfront fee: $4,750 for Web-Based Conference or $9,500 for Face-to-Face Meeting in Germany.
Average time for funding: 45-60 days.
PROJECT FINANCE SIX: Private Finance Funding Program $5,000,000 minimum seed capital to qualify. Can be applied to project funding, capital enhancement and accumulation. Seed capital is placed in owner’s personal account in an SEC regulated brokerage and is secured with a promissory note, maturing in one year. The account is placed in a very special financial transaction…Risk free! And with weekly compounding can generate very large returns, which, within a few months can accumulate to the project cost levels…. and beyond. Since the accumulated funds belong to the capital funds owner (based on the seed capital), there is no
“repayment” And, thus, the funding does not involve debt service. There are no fees of any kind. Funds are wired to the capital owner’s subaccount in a major world bank.
PROJECT FINANCE SEVEN: Joint Venture/ Equity Participation Program. Amount: 20 Million to 1
Billion
Property Types: Commercial Real Estate Developments, Mines, Resorts, Gulf Courses, Apartment Buildings, Green Projects (Including Ethanol, Biodiesel, Waste, etc…) , Oil and Gas, and many more
Term: 1-5 Years
Interest Rate on Debt Portion: 2.5% to 4.5% SIMPLE INTEREST
Equity Contribution: 10%-40%
Recourse: NON-RECOURSE
Closing Time: 60 Days or Less
Closing Cost: (REFUNDABLE IF WE DO NOT FUND WITHIN 60 DAYS GUARANTEED ON CONTRACT)
$500K for projects 10M to 100M
$1M for projects 101M to $500M
$1.5M for project $501M to $1B
To be considered, email us a 2-4 page business plan including Use of Funds, Color Copy of Passport, Articles of Incorporation, C.I.S form and a Resolution of the Board and POF of required closing cost. If we are interested in proceeding we will issue a LOI. Once LOI is issued we will request a conference call with client. If we are still interested in proceeding, we will draft the MOU and move forward with transaction. NO EXCEPTION TO THE STEPS.
PROJECT FINANCE EIGHT: International Banking Platform-50% Return Quarterly
Min: $10M. The investor receives a 50% return quarterly, backing on the bank's licence, in programs with Deutsche Bank and Credit Suisse. All of this without putting their money at risk. We can arrange for the client an introduction directly with the bank president. They can sit across the desk if they like. The Mandate walks them into this invitation only opportunity.
PROJECT FINANCE NINE: 10/100 Developer Loan Program:
Loan Size: $10M with no max
Project Type: Acquisition, Development & Construction
Requirements: Client deposits (or has bridge lender deposit) 10% of the loan amount in an escrow account at Bank of America. (If you need assistance putting up the 10%, it is available.) Funds will be held for the term of the loan for 12 months, whichever is sooner. Loan proceeds will be paid out to client through construction draws, funding up to 100% loan-to-cost.
Loan Rate: 90-day Libor + 1.5% (4.51% as of March 11, 08)
Term: 1-5 years/ no prepayment penalty
Funding Steps:
1.Borrower provides complete loan package for underwriting.
2.We inspect documents & will evaluate the info to make sure it is acceptable. (2-3 days)
3.Once all required due diligence docs are received, underwriting will begin. (5-7 days)
4.If the underwriter approves of the project, a Conditional Letter of Commitment (CLOC) is issued to client.
5.Borrower accepts the CLOC & (if needed, the bridge lender issues approval for loan &) transfers the 10% deposit into the escrow account. (4-7 days)
6.Final commitment with AIA approved construction draw schedule (for construction projects) is issued to client within 24-48 hours. (1-2 days)
7.Loan closing is scheduled, & total loan amount scheduled to be ready for draw down within 45-60 days
FTP Recently funded deals:
*Resort Hotel/Golf course/Residential Development, $1.2 Billion, Costa Rica, Loan still in draw phase
*Recycling Facility with Biodiesel Plant, $110M, Puerto Rico, 1/08
*Land Purchase, $106M, Manhattan, NY, 12/07
*Warehouse/Industrial Park, $67M, Maryland, Loan still in draw phase, 12/07
Note: Due to overwhelming demand and the fact that we got over 52 applications in the past month a $12,000 retainer fee has to be implemented. This retainer is 100% refundable if we do not fund the project FTP has to charge it however because of the nature of the program.
PROJECT FINANCE TEN: Non Conventional Lender with access to Warehouse Lines & Hedge Funds.
Min: 5M. Max: $250M+, also more in stages. Timing: 60-90 days. LTV: 75% (100% JV only). Interest Rate:
Prime+1 to 4 points. No equity stake by lender unless JV accepted. Term: 20 years. Upfront Costs:
Warehouse Lines- Refundable application & due diligence fee (amount varies), refundable if project doesn’t fund. Hedge Fund- app fee: $5,000, non refundable, no due diligence fee, project size is $100M minimum. No prepayment penalty, preferred: real estate & energy projects, will also look other industries if project makes sense. Location: US preferred. Can also do Canada & Latin America but extra due
diligence fees may apply. 5-7 days to approve/LOI.
PROJECT FINANCE ELEVEN: Commercial Real Estate projects: require a min. of 50% land costs covered, plus closing costs covered and our sources will fund the remaining 50% of land and 100% of construction costs. The easiest way to meet this minimum is to have the landowner become a partner, and 100% of the equity in the land becomes owner equity in the project. Residential Real Estate projects: requires pre-sales of a min. of 5% in addition to the above owner investments. North American projects can be as low as 5M. Currently international projects must be applying for 100M or more, have a local partner familiar with the political, legal, and real estate environment, and have presales.
PROJECT FINANCE TWELVE: JV Program. This is a project based Joint Venture, not borrower based, and the joint venture funds 100% plus most costs. The borrower does not need to show assets or net worth.
The joint venture takes between 20%-40% of the project’s equity. No payments and no pay back. No up front due diligence fees is required by Joint Venture Partners or Investors. Typical project funding time is 4-8 weeks after client/investor conference call.
PROJECT FINANCE THIRTEEN: 15% Down Standby Letter of Credit Program
If you need funding fast, this program takes just 2 to 4 weeks if you have 15% to receive the SBLC. No geographical limitation. No Max. All types of projects. Require a business plan and executive summary of project. No upfront fees. This is a 12 month program at 7% rate. The SBLC will be issued from either Societe Generale or BNP Paribas, the 15% needs to be put into a verifiable escrow account. This 15% is what it cost service company to provide you the desired the SBLC. Once the escrow account is verified and the service company is added to the escrow account, we will then instruct the collateral provider to issue the SBLC, which can take up to 72 hours. According to the ICC publication 590, the funds in escrow are not moved nor encumbered until after the Beneficiary has received bank confirmation that the SBLC has been issued. This is a bank to bank transaction , noot euroclear, etc. Once the SBLC has been issued, authenticated and delivered, the funds in escrow are released to the service company.
If you need a loan against the SBLC, an additional 2% is charged.
Loan Structure:
1 YEAR INTERST ONLY 2.4%
2 YEAR INTERST ONLY 2.8%
3 YEAR INTERST ONLY 3.2%
4 YEAR INTERST ONLY 3.6%
5 YEAR INTERST ONLY 4.0%
6 YEAR INTERST ONLY 4.4%
7 YEAR INTERST with Balloon Payment 4.8%
Principal loan may be renewed after year 7 with excellent payment history. Loan Fees are paid out of escrow at closing. The outstanding principal amount borrowed will incur simple interest at 0.5% (half of one percent) above LIBOR for the term of the loan. Borrower has an option of a fixed interest rate at 1.5% above LIBOR. In the case of deferred payments for year one or two, interest will be compounded during the deferment period at the rate of 1.5% above LIBOR. The above interest rate and terms are based on a Bank Guarantee or Stand By Letter Of Credit issued by a Top 25 World Bank.
PROJECT FINANCE FOURTEEN: Lease To Trade Investment Program
*This is an investment opportunity where it involves the leasing of funds and a Private Placement Program (PPP).
*We have set up this opportunity with the Investor who has limited funds and would like to leverage the funds and enter a PPP.
*We have combined the leasing & PPP process together. The complete process takes 30
days. The Investor will start receiving PPP profits at the end of the 5th week.
*In the event the Investor is not receiving PPP profits within 60 days, then the Investors Funds will be returned.
*Leasing terms : 11% cost of face amount of funds
PPP terms: 40 weeks paid weekly
80% LTV Credit Line against lease funds
25% a week profit returns
10% max allowable for all Brokers
*Example: base on 100M leased funds
100M x 11% (fee) = 11M Lease fees
100M x 80% (LTV) = 80M amount placed in PPP
80M x 25% (profit) = 20M weekly profits
20M x 10% (brokers) = 2M max to Brokers
Recap: 20M – 2M = 18M weekly net to Client
18M x 40 (weeks) = 720M PPP total payouts
NOTE: INVESTOR WILL NEED TO HAVE PROJECTS
Procedures:
1. Investor: submits Client Information Sheet, Color Copy Passport, POF and Executive
Project Summary.
2. Provider: Contract sent with escrow banking coordinates.
3. Investor: Contract is signed and money sent to escrow account. Once the funds have been posted to the Escrow Account the 30 days count down will start.
PROJECT FINANCE FIFTEEN: Instrument Leasing Program
In this program, if qualified, you can lease an SBLC and bring it to trade. Deposit fees for the instrument would be $150K Euros ( or $225,000 USD). These fees are completely refundable when the instrument is returned. For this amount you could control between $10M and $499M instrument for one year. This program is with a major brokerage firm.
PROJECT FINANCE SIXTEEN: Private Capital Appreciation Program
Global Investors have been providing private investment opportunities worldwide since 2001. We work with private capital groups and commercial banks across the world to deliver unique investment opportunities.
In this program, we create a very flexible scenario in which you will be able to get your project completed.
What can be done is that we can assist the principals in obtaining a BG/SBLC for a cost of 5-6%. THIS IS AN AWESOME WAY TO OBTAIN CAPITAL FOR PROJECTS. Here is how it will work: principals purchase a BG/SBLC, (we will arrange for the purchase) it will be issued in their name. We will then purchase it from them at say 65% of face value. THIS WILL GIVE THEM THE CASH THEY NEED FOR THEIR ENTIRE PROJECT – they will get $65M in cash!! They will not have a loan to pay back!! They will have cash to
complete their entire project at a cost of $5-6M. Compare this to a loan: say they borrow $65M and their interest is 6%, the interest alone for the first year will be $3.78M, $7.56M for two years. Times this by how many years along with principal, it will add up to in the $100M’s!! $5-6M vs. $100’sM!!! It’s obvious the better avenue. The principals will have spent in interest in 1 ½ years the same amount of money that they will use to purchase the BG/SBLC. Once again, let’s say you need 100M to fund your project. We can help you get a bank guarantee issued from a major money centre bank in the amount of $100 Million USD. We will, in turn, purchase that Guarantee from you at 65-75% of the face value. That will give you the funds that would be required to complete the project without having a loan or lien on the project or property. This option will speed up the process in getting your project funded fully with great speed. Once the BG has been issued and assigned to us, we can have it purchased and funds transferred to your banking coordinates in 10 banking days. So for $5-6M you will get $65M for your project – NO LOAN, NO LIEN ON YOUR PROPERTY.
THESE PROGRAMS ARE NOT AVAILABLE AT THE PRESENT TIME
PROJECT FINANCE:
Oil/Gas & Humanitarian
Trust $100M+.
Humanitarian projects: helping communities (eg. hospitals, schools, telecom, etc.) Environmental
projects: helping environment (eg. Biofuel, waste heat reuse, solar, wind, hydropower, etc.)
Socially-Redeemable
projects: helping people (eg. Wells, housing, etc.)
3rd World job projects: helping to create or train for solid long-term employment. Infrastructure
projects: helping to create infrastructure in developing countries (eg. Roads, bridges, tunnels, etc.)
Energy projects: helping to create energy, all types, anywhere in the world. This
fund can also do green buildings (LEED certified silver level) and mining projects. The mining projects have to have some humanitarian aspect such protecting the environment, school, hospital, alternative energy, affordable housing,
etc. $5,000 Fee is required after approval of project.
PROJECT FINANCE:
Charitable Foundation
$150M+. 100% LTV.
Interest & Principal are fully forgiven (ie no repayment of interest and debt) 5-7 day approval. 3 to 6 months funding. Due Diligence fees: $90,000 upfront but
refundable if not approved.
Over 17.5 Billion in projects funded in 2006 & $20 Billion to date in 2007.
20% Equity in project.
Closing costs are paid out of the loan and are also forgiven by lender.
Acceptable projects:
alternative/green energy, affordable housing, assisted living, senior housing, go
zone projects, clean water & desalination, major economic stimulus to a region’s public & private sectors, environmentally friendly infrastructure, enhanced agricultural technologies & tools, advanced security applications, minority vendor or ownership status, access to local & affordable health assessment & treatment, public service buildings, transportation.
PROJECT FINANCE:
Private Investors Web Portal
Program This program allows the borrower to present any financing terms they wish to over 8,000 real estate sector based qualified investors, banks, angel firms, and hedge fund managers. An offer letter is completed by the borrower and will be attached to the Power Point Presentation outlining the terms the borrower wishes to secure.
The Private Investor
Program may require personal and/or business financials. JV/Investor
Programs Submission Fee: $3,500.00 USD. (Flat fee per file) This fee is used to
submit the Clients Project to over 8,000 qualified national and international
investors, angel investors, joint venture partners, hedge funds, private banks, and insurance companies that are exclusive worldwide contacts of ACL in the commercial lending sector.
This fee is for the following required services: Project Power Point Presentation,
band width, portal cost, investor(s)/JV partner(s) approval investigations, and
administrative set up. All potential investors are ‘scrubbed and verified” via
ACL’s web portal programmers. Client will be given a private web site to view the project in ACL’s web portal and a weekly numerical breakdown of interested investors
throughout the world. A personalized video presentation by the client can be added to the Project Power Point Presentation at no extra charge. Below is a breakdown of what will be needed and the process flow on every file submitted:
Please initially send:
1- Executive Summary, Color Photos of Property, and Business Plan
2- ACL will review and send out the appropriate Project Program Contract for the
client
3- Once the contract is signed and returned and the submission fee to ACL is received, ACL will then send the needed program forms to be completed by the borrower or LO. (Application, Offer Sheet, financial statements, etc...)
4- Once all forms are completed and returned, ACL will submit to ACL’s exclusive web portal. Client and ACL should begin receiving responses for the project within a week.
PROJECT FINANCE:
SBLC Program. People that do not have a lot of money to start but want in a program… 300,000 to get in and get the money they need….and their money is never at risk. If you’re interested in a leased instrument, we have put together the solution.
Minimum instrument value :
$ 10,000,000 Client
investment : $ 300,000 Refundable deposit ( existing instruments also qualify). STEPS INVOLVED:
* You are to secure an NCND and Non – Solicitation and submit to the Company.
* Conference call with you, your broker and the Company. All details will be
outlined in this call.
* Client will be forwarded complete information package.
* Conference call to review documents and answer questions you may have
* Form an LLC between Investor and Company…. split 50 – 50. Investor will
be named Managing Partner so their money is never at risk.
* Investor transfers $ 300 K to escrow.
* SBLC is purchased with Escrow money furnished by investor (steps skipped here)
* This will leave an approx balance of $ 7.5 mm to go into escrow (steps skipped
here)
* This will leave a balance of + $ 15mm (steps skipped here)
* Approx yield of $ 450 mm
* 25% taken for Humanitarian Project
* Balance of monies split 50 – 50 between members of the LLC, the Investor & the Company.
Quick Commercial Loan Commitment, Partnership Commitment, Joint Venture Commitment
& Development Agreements. Global Large Scale Development & Construction Loans, Partnerships & Joint Ventures. DHC Global Investors provide several benefits to clients compared with banks: interest rate and margins, are usually up to 20 % lower than those offered by banks, faster access to financing, lack of complex procedures, and many others.
UNIQUE PROJECT FINANCING (Minimum Thirty Million USD): Real Estate Projects, Energy Projects, Mining Projects, Infrastructure Projects, Projects supported by Secured Instruments (World Top 25 Banks), Projects with special sense and profit potential over 50%. Development, Construction, Infrastructure, Oil refineries, Power Plants, Commercial ships, Oil tankers, Cargo ships, Cruise ships, Ethanol Projects, Commodities, Precious Metals, Stone Portfolios, Super Jumbo Residential Loans over THIRTY MILLION USD, etc…
VERY IMPORTANT: Applicant must have liquid funds equivalent to at least
15 % of the total cost of the project ( In countries with higher risks at least 20-25 %). Likewise Applicant must provide proof of such liquid funds (Client's bank or banks statements). Example: If the total cost of the project is 140 Million USD, Applicant must provide proof of liquid funds for the amount of 21 Million USD. No exception to this rule which is the most important
condition in order to provide the commitment or the letter of intent (LOI) and to continue the process toward funding.
• Worldwide Project Financing
• Funding from $30 Million USD to $500+ Million USD
• Funding in 45 to 60 banking days with total requested documents
• Financing approvals within 72-96 hours after total requested documents has been provided.
• Rates between 6.5% - 12.75% 1-30 year fix. Interest Only, NO PPP. Total fees and charges are never more than 6 % of total funding and are settled on a case by case basis during the process. Note: these terms could vary for better or worse.
• No minimum credit requirements
• Borrower must provide a solid business plan and exit strategy
• 15-25 % Applicant Cash Contribution into the deal is required.
Other funding Scenarios
Construction Financing
Shopping Centers
Office Blocks
Medical Centers
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Engineered financing is used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydro-electric projects. It is the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. It is important to have the right financial plan, assess the risks and design the financing mix in order to raise the funds, and to understand why some project financing plans have succeeded while others have failed. Project management must have in mind the design of contractual arrangements to support project financing, host government legislative provisions, public/private infrastructure partnerships, public/private financing structures, credit requirements of lenders, how to determine the project's borrowing capacity, how to prepare cash flow projections and use them to measure expected rates of return, tax and accounting considerations, and analytical techniques to validate the project's feasibility.
A mine, toll road, railway, pipeline, power station, ship or hospital is repaid from the cash-flow of the project. Funding source looks to the assets and revenue of the project in order to secure and service the loan, usually has no recourse to the non-project assets of the borrower, and the credit risk associated with the borrower is not as important as in an ordinary loan transaction. What is most important is the
identification, analysis, allocation and management of every risk associated with the project.
Risk minimization.
In a no recourse project financing, the risks for funding source are great. The loan can only be repaid when the project is operational, so, if a major part of the project fails, the lenders lose a substantial amount of money. The assets that remain are usually highly specialized and possibly in a remote location. If
saleable, they may have little value outside the project. Therefore, the risks associated with the project have to be reduced or eliminated as far as possible. Because of the risks involved, the cost of such finance is generally higher and it is more time consuming for such finance to be provided.
Dangers of any events which could have a negative impact on the financial performance of the project must be minimized, in particular, events which could result in:
(1) the project not being completed on time, on budget, or at all;
(2) the project not operating at its full capacity;
(3) the project failing to generate sufficient revenue to service the debt; or
(4) the project prematurely coming to an end.
If a risk to the lenders cannot be minimized, they will need to build it into the interest rate margin for the loan. The minimization of risks involves three steps:
1 - Risk identification and analysis. Project sponsors must prepare a feasibility study (as to the construction and operation of a mine or pipeline). Lenders will carefully review the study and engage independent expert to supplement it. The costs of the project must be properly assessed and the cash-flow streams from the project properly calculated. Some risks are analyzed using financial models to determine
the project's cash-flow and hence the ability of the project to meet repayment schedules. Different scenarios will be examined by adjusting economic variables such as inflation, interest rates, exchange rates and prices for the inputs and output of the project.
2 - Risk allocation. Once the risks are identified and analyzed, they are allocated by the parties through negotiation of the contractual framework. Risk should be allocated to the party who is the most appropriate to bear it: who is in the best position to manage, control and insure against it and who has the financial capacity to bear it. Lenders allocate uncontrollable risks widely to ensure that each party has an interest in fixing such risks. Commercial risks are allocated to the private sector and political risks to the state sector.
3 - Risk management. Risks must be managed in order to minimize the possibility of the risk event occurring and to minimize its consequences if it does occur. Lenders ensure that the greater the risks that they bear, the more informed they are and the greater their control over the project in order to take it over if the borrower defaults. Lenders must monitor the project closely and must impose reporting obligations on the borrower and controls over project accounts.
Types of risks. Every project is different, what is a major risk for one project may be minor for another.
We can just discuss the risks that are common to most projects and the way for minimizing them. It is helpful to categories the risks according to the phases of the project within which they may arise: (1) the design and construction phase; (2) the operation phase; or (3) either phase. It is useful to divide the project in this way because the nature and the allocation of risks usually change between the construction phase and the operation phase.
1. Construction phase risk - Completion risk. Completion risk allocation is a vital part of the risk allocation of any project. This phase carries the greatest risk for the lenders. Construction carries the danger that the project will not be completed on time, on budget or at all because of technical, labor, and other construction difficulties. Such delays or cost increases may delay loan repayments and cause interest and debt to accumulate. They may also jeopardize contracts for the sale of the project's output and contracts for supply of raw materials. For minimizing completion risk before lending takes place:
(a) obtain completion guarantees requiring the sponsors to pay all debts and liquidated damages if completion does not occur by the required date;
(b) ensure that sponsors have a significant financial interest in the success of the project so that they remain committed to it by insisting that sponsors inject equity into the project (at least 15-25 %);
(c) require the project to be developed under fixed-price, fixed-time turnkey contracts by reputable and financially sound contractors whose performance is secured by bonds or guaranteed by third parties;
(d) obtain independent experts' reports on the design and construction of the project.
(e) make pre-completion phase drawdown’s of further funds conditional on certificates being issued by independent experts to confirm that the construction is progressing as planned.
2. Operation phase risk - Resource / reserve risk. Example: for a mining project, rail project, power station or toll road there are inadequate inputs that can be processed or serviced to produce an adequate return. There are insufficient reserves for a mine, passengers for a railway, fuel for a power station or vehicles for a toll road. Such resource risks are usually minimized by:
(a) experts' reports as to the existence of the inputs (detailed reservoir and engineering reports which classify and quantify the reserves for a mining project) or estimates of public users of the project based on surveys and other empirical evidence (the number of passengers who will use a railway);
(b) requiring long term supply contracts for inputs to be entered into as protection against shortages or price fluctuations (fuel supply agreements for a power station);
(c) obtaining guarantees that there will be a minimum level of inputs (from a government that a certain number of vehicles will use a toll road);
(d) "take or pay" off-take contracts (require the purchaser to make minimum payments even if the product cannot be delivered).
Operating risk. Risks that may affect the cash-flow of the project by increasing the operating costs or affecting the project's capacity to continue to generate the quantity and quality of the planned output over the life of the project (for
example, the level of experience and resources of the operator, inefficiencies in
operations or shortages in the supply of skilled labor). The way for minimizing such risks before lending takes place is:
(a) to require the project to be operated by a reputable and financially sound operator whose performance is secured by performance bonds.
(b) to require the provision of detailed reports on the operations of the project
(c) to control cash-flows by requiring the proceeds of the sale of product to be paid into a tightly regulated proceeds account to ensure that funds are used for approved operating costs only.
Market / off-take risk. The loan can only be repaid if the product that is generated can be turned into cash. Market risk is the risk that a buyer cannot be found for the product at a price sufficient to provide adequate cash-flow to service the debt. The best mechanism for minimizing market risk before lending takes place is an acceptable forward sales contact entered into with a financially sound purchaser.
3. Risks common to both construction and operational phases
Participant / credit risk. Risks associated with the sponsors or the borrowers themselves. The question is if they have sufficient resources to manage the construction and operation of the project and to efficiently resolve any problems which may arise. Credit risk is also important for the sponsors' completion guarantees.
To minimize these risks, lenders need to satisfy themselves that the participants in the project have the necessary human resources, experience in past projects of this nature and are financially strong (that they can inject funds into project to save it).
Technical risk. Risk of technical difficulties in the construction and operation of the project's plant and equipment, including latent defects. Lenders minimize this risk by preferring tried and tested technologies to new unproven technologies. TR are also minimized before lending takes place by obtaining experts reports as to the proposed technology. TR are managed during the loan period by requiring a
maintenance retention account to be maintained to receive a proportion of cash-flows to cover future maintenance expenditure.
Currency risks include:
(a) a depreciation in loan currencies may increase the costs of construction where significant construction items are sourced offshore;
(b) a depreciation in the revenue currencies may cause a cash-flow problem in the operating phase.
Mechanisms for minimizing resource include:
(a) matching the currencies of the sales contracts with the currencies of supply contracts as far as possible;
(b) denominating the loan in the most relevant foreign currency;
(c) requiring suitable foreign currency hedging contracts to be entered into.
Regulatory / approvals risk. Risks that government licenses and approvals required to construct or operate the project will not be issued (or will only be issued subject to onerous conditions), or that the project will be subject to excessive taxation, royalty payments, or rigid requirements as to local supply or distribution. Such risks may be reduced by obtaining legal opinions confirming compliance with applicable laws and ensuring that any necessary approvals are a condition precedent to the drawdown of funds.
Political risk. The danger of political or financial instability in the host country caused by events such as insurrections, strikes, suspension of foreign exchange, creeping expropriation and outright nationalization. It also includes the risk that a government may be able to avoid its contractual obligations through sovereign
immunity doctrines. Common mechanisms for minimizing political risk include:
(a) requiring host country agreements and assurances that project will not be interfered with;
(b) obtaining legal opinions as to the applicable laws and the enforceability of contracts with government entities;
(c) requiring political risk insurance to be obtained from bodies which provide such insurance (traditionally government agencies);
(d) involving lenders from a number of different countries, national export credit agencies and multilateral lending institutions such as a development bank;
(e) establishing accounts in stable countries for the receipt of sale proceeds from purchasers.
Major Force risk. Risk of events which render the construction or operation of the project impossible, either temporarily (minor floods) or permanently (complete destruction by fire). Mechanisms for minimizing such risks include:
(a) conducting due diligence as to the possibility of the relevant risks;
(b) allocating such risks to other parties as far as possible (to the builder under the construction contract);
(c) requiring adequate insurances to the benefit of Lenders.
Asset based hard money loans
An aggressive network of hard money, private money, bridge, & JV lenders that actually close deals even in today’s volatile market.
The typical terms are as follows:
Rates as low as 9%
Typical terms: 1 year to 3 years
Loan amounts: 30 million+ (USD)
Both Domestic and International lending
All commercial properties and raw land
Typical closing times are 14 days+ (case by case can happen quicker if needed)
Please be realistic with your LTV (Loan to Value) as hard money lenders will not lend over 65/75% LTV on commercial properties and 50/55% on raw land.