$19.5MM financing for construction of a water treatment facility

The Customer:

$1.25BN revenue S&P B rate subsidiary of a publicly held company

The Complexity:

  • 60% soft costs
  • Extensive construction
  • Related party provided assets
  • Assets located at a site not controlled by the lessee
  • Financing needed to be provided before environmental study was completed
  • No parent guaranty
  • Inability to obtain a landlord waiver
  • Client needed to maximize cash flow through lowest monthly payment
  • Extensive documentation process with multiple parties

The Clarity

  • Nexseer took a broad view of the transaction to get comfortable with lessee execution, take or pay contracts, and collateral usage
  • 100% financing for collateral and construction
  • Ten year term with a 14 year amortization and step payment structure to maximize cash flow
  • Nexseer and the client worked through a holiday to complete documentation and fund the transaction by the client’s deadline.