We've been working with Gallantree for the last 4 months and they have been great supporting our business needs.
The client was a consortium of energy professionals that were looking to fund a mid-scale off-shore Wind Farm. The consortium were very strong in market and industry research and who to develop and construct the wind farm, yet were unfamiliar with the funding process, financial models or documentation a FI and other funders would require.
As the project was a greenfield project, with working capital only, many lenders or private equity companies were engaged directly by the consortium, but little progress was undertaken on the financial side.
We've been working with Gallantree for the last 4 months and they have been great supporting our business needs.
A typical, simple project finance structure is preferred to enable efficiencies.
A considerable amount of work is carried out before the loans are agreed, to check that the project is well planned and that it can actually make the necessary repayments over the course of the facility.
Generally one single FI will not take 100% of the debt, therefore Senior and Junior lenders are required. Usually the Senior lender will take the lions share of the debt, but with a competitive rate.
A financial model built over 10 years, underwritten against future asset values and revenue generation was required to calculate the borrowing capacity of the SPV.
The structuring of the loans are broken down into three key phases, securing the site, purchase / installation of the turbines and equipment, and operational phase.
After completion of the Wind Farm, the stakeholders planned to sell all project rights to a Special Business Unit or SBU.
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