$5 Million Bridge Loan
East Coast alternative energy plant, generating renewable energy from wood matter. The company sells power and energy credits at market rates.
The company had become certified to produce Renewable Energy Credits (REC’s) and had a two year contract to gross approximately $17Million. The company’s newly acquired, integrated 28 megawatt wood-fired power plant serving the Northeast energy power pool, had a useful life of 25-30 years beyond the contracts. The plant had not operated in three years and required renovation and start-up financing to upgrade the facility to an electric generating power plant. The upgrade was vital to fill their contract and take advantage of the plant’s future operations and income producing opportunities. All permits were in place when the company’s financing fell through.
Business Capital worked with its partners to successfully secure the $5 Million bridge loan. This bridge provided capital to complete the upgrades and re-commissioning of the plant, repair all systems needed for safe and consistent operation, and to purchase chippers to augment and secure consistent fuel supply. Business Capital arranged the asset based financing with a partial government guarantee for plant operation and fuel purchases.