Project Finance Executive Summary - Vacaville, CA · Project Finance Executive Summary ... it was...
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P: 307.200.7075
F: 866.593.9753
www.PristineSun.com
Western Regional Office:
4695 MacArthur Court, 11th
Floor
Newport Beach, CA 92660
Headquarters:
970 W. Broadway, Suite E-393
Jackson, WY 83002-3000
Pristine Sun LLC
a clean energy company
$1 Billion in energy assets by 2015
Project Finance
Executive Summary
Pristine Sun LLC
Pristine Sun’s core management team have an average of 10 years’ experience each in the
development and finance of solar & wind projects, with a combined total of $1 Billion+. One
example: in 2001-2004 our core team developed the project site that is the largest wind
farm in Kansas: the ~$450 Million (250 MW) Smoky Hills Wind Farm. Our business model is
simple: rapidly acquire 20-year Power Purchase Agreements (or PPAs) to sell clean electricity
to the host property owners, then underwrite and finance these low-risk projects that offer
leveraged IRRs of at least 25% after tax and pre-tax unleveraged IRRs of 11-15%.
Pristine Sun has signed PPAs in hand totaling $100 Million + $150 Million of Feed-In-Tariff
(FIT) projects that can be “shovel ready” within ~90 days from a funding commitment
(totaling $250 Million of projects need financing commitments now), plus $600 Million+ of
LOIs for additional 150 MW of PPAs in our development pipeline. These projects are primarily
rooftop & carport solar PV with private companies, churches and private schools, with some
Feed In Tariff projects where the utility is the power buyer. Some projects include small wind
turbines and/or solar hot water.
In 2010 we funded the first $250,000 of small commercial & residential PPA projects with
our own capital and are currently funding several more internally. In March 2011 we closed
on funding for three projects in Hawaii (Maui Brewing Company, Maui Chemical Corp and
Maui Brewpub) totaling $3 Million (~600 kW) and each of these projects should be under
construction by Earth Day 2011 (April 26th
). We expect to close financing in April on $4 Mil-
lion of additional projects in Maryland and California.
Each project must meeting the following minimum standards to be
approved by Pristine Sun LLC for financing:
1. Rebates & incentives equal 70% or more of installed project cost
2. Shading is no more than 15% of annual insolation
3. Roof condition is average or better (if roof-mount)
4. City permitting conditions are reasonable
5. Serving utility offers true net metering
6. EES generation equals at least 33% of customer usage
7. Good credit (Dun & Bradstreet and/or Moody’s)
8. Installation will be in U.S./U.S. territory or Ontario, Canada
9. No recent bankruptcies
10.No significant pending judgments
11.No criminal record (for key principals)
12.If customer is a tenant, the landlord gives consent for meter to
be controlled by Pristine Sun in the event tenant moves out
13.Equity in property is greater than value of EES equipment
14.Pre-tax unleveraged IRR > 12%
15.After-tax leveraged IRR > 25%
a clean energy provider
Investment Criteria
$1 Billion in energy assets by 2015
“Principals each have at least 10 years of energy project development and/or
finance experience. We have created a marketing machine that has generated a
whopping $250 Million of solar & wind projects in less than 9 months.”
1 of 10 projects we built
for SPRINT Corp.
Alysia Carlson Helming, Principal. Ms. Helming has over 18 years’ experience in providing internal and external advisory services to CFOs & CEOs for Fortune 500
and mid-sized corporations, including Bushnell, Wells Fargo Bank, Hallmark Cards, DST Systems and Exelon. Most recently, Alysia offered Interim CFO services to KC Biofuels,
LLC and Probiotics Holdings, LLC. Prior to this, Alysia was Director of Financial Planning & Analysis at Bushnell Outdoor Products, where she served as the Company’s liaison
with attorneys, bankers, and buyers to successfully sell the company in an $800 Million transaction in 2007. Alysia was a co-founder and CFO for Kansas Wind Power (now Trade
Wind Energy), a wind power development company. Prior, Alysia played an integral role in transitioning the KC/Omaha offices of Andersen Business Consulting into a new start
up consulting firm called MarketSphere Consulting. Alysia was a Manager with Andersen Business Consulting. Prior to joining Andersen, Alysia was the Vice President of Strategy
for the Investment Management & Trust Group at Wells Fargo Bank. Her 7 year career at Wells Fargo began as Financial Analyst for the CFO. Alysia holds a BA in Economics
(emphasis in Finance and Accounting) from the University of California, Santa Cruz. In 2006, she coordinated the KC premiere of the feature-length movie "The Great Warming"
starring Alanis Morrissette and Keanu Reeves, and helped with the nationwide opening of the film. Ms. Helming first became certified in wind and clean energy project finance in
2003 and has developed numerous financial models and pro-formas for the wind, solar, and biofuels finance industry.
Troy Helming, Principal. Mr. Helming has been a CEO or President, as well as a clean energy visionary, for nearly 20 years. He founded Kansas Wind Power LLC (now
TradeWind Energy LLC), raised millions of seed capital, acquired PPAs/LOIs with utilities for $300 Million of wind and solar projects, and developed wind farm sites. He sold the
company in 2003; it was recapitalized by Italian utility Enel SPA which finished construction on a 250 MW $450 Million wind farm (Smoky Hills Windfarm). In 2005 Mr. Helming
wrote & published a book The Clean Power Revolution, created The Freedom PlanSM (a blueprint to convert America to 100% renewable energy and save the U.S. economy $1
Trillion per year), published numerous articles, has been a keynote speaker in 13 states and 4 countries, promoted renewable energy tirelessly on TV & radio, fought the construc-
tion of various new coal plants, and served for the Sierra Club as an expert witness on wind energy. In 2007 Mr. Helming designed, built, and operated an EPA-registered 10 mgpy
biodiesel refinery. Since 2001 Mr. Helming has designed, sold, permitted, installed, and serviced numerous small wind, solar, fuel cell and energy efficiency solutions and been a
consultant for dozens of companies (including McKenzie & Company, Bank of America, Citigroup, etc.). Mr. Helming was trained in sales by AT&T in 1990, won the 1st ever Class
Excellence Award awarded to the MO/KAN branch, and won numerous top national sales awards during a successful 10 year career in telecommunications. He holds a BS in
Business Administration from the University of Kansas (where he was captain of the National Champion yell-leading squad on ESPN & 2-time All American), has certifications in
wind energy finance, system design & technical sales, and is a member of Mensa.
Josh Crooker, Principal. Mr. Crooker has 10 years of full-time renewable energy experience, primarily wind and solar. He has developed sites for and/or designed, sold,
permitted and/or personally installed over $500 Million of solar and wind projects, including commercial projects for a Fortune 100 client and government agencies. He attended
the University of Missouri-Rolla for Electrical Engineering and then moved to Kansas City to continue school at University of Missouri-Kansas City studying Information Technol-
ogy. Mr. Crooker acquired his pilot’s license in 1999 and obtained Instructors certificates and Commercial Pilots License. As the former President of Krystal Planet Corporation,
an energy efficiency and clean energy product marketing, training, and project development company, Mr. Crooker has been involved in all aspects from design, feasibility studies,
installation, construction, operation, maintaining, and updating of wind systems, solar photovoltaic, solar thermal systems, and biodiesel production. Mr. Crooker has been an
integral management team member in the development of numerous clean energy systems from small residential through large commercial and utility scale.
Carl Peterson, Principal. Mr. Peterson has 28 years of experience in the independent energy business. During that time, he has been directly responsible for arranging
both the debt and equity financing for a total of 32 energy projects throughout the United States. Those projects include: hydroelectric, geothermal, and co-generation projects
with a combined value of excess of $750 Million. After attending Boise State University, Mr. Peterson worked for the Xerox Corporation. During his tenure with Xerox, Mr.
Peterson received over 5000 hours of advanced sales and management training. Every year, for ten years, he distinguished himself by performing in the top 1% of a five thousand
man sales force, and was promoted four times. In 1984, he was offered an equity partnership with one of his consulting clients, the Bonneville Pacific Corporation; a company that
was formed to build privately owned power plants around the western U.S. Until 1990, Mr. Peterson was the Senior Vice President of New Business Development and Finance
for the Bonneville Pacific Corp. Since 1990, Mr. Peterson’s consulting practice has helped clients in obtaining both debt and equity financing for projects they are developing, with
an emphasis in energy, especially the green energy sector.
Tim Woolsey, Supply Chain Director, CPM/CPIM. Mr. Woolsey is a seasoned professional executive director with 25 years in operations, production,
manufacturing, and supply chain management experience in demanding technical environments in United States and overseas. Mr. Woolsey has a BA Degree in Business Economic
and professional association certificates from APICS (cpim) and ISM (cpm). He possesses direct and pertinent professional experience in engineering, construction, electronics,
semiconductor, and ERP Software’s industries. Exceptional liaison skills: builder of bridges between production, operations, and supply chain functions. Mr. Woolsey’s has man-
aged international operations for large multi-national firms such as Saudi Aramco (the world’s largest oil company) and Siemens Information Systems. Mr. Woolsey will oversee
the management of the operations department for Pristine Sun handling major supplier and vendor deliverables involving large, multi-million dollar contracts with a complex,
worldwide supplier base. Tim will bring World Class Manufacturing and Lean Six Sigma processes to Pristine Sun ensuring that the company is providing the highest customer
satisfaction to our customers and timely completion of projects to maximize value and yields for our financial partners.
Felix Yu, Principal. Mr. Yu has over 15 years banking industry finance experience in functions including corporate finance, strategic planning, management reporting, and
performance operating metrics, global sales/trading operations and investment management marketing support. Previously, he was Vice President and Division Finance Officer at
Wells Fargo & Company's Business Banking Group, Technology and Operations. At Wells Fargo, he managed the financial impact and reporting of major bank mergers, consolida-
tion of operations centers, and development and implementation of performance metric models He started his banking career as an associate at JPMorgan Chase & Company's
Hong Kong branch, supporting the sales & trading middle office. He has a B.S. in Physics from UCLA, and an M.B.A from Carnegie Mellon University.
a clean energy provider
Management Team
$1 Billion in energy assets by 2015
Sales & Marketing team
Note: administrative support team members are not listed.
Madison Baker
Gavin Carmichael
Frank Erickson
Andrew Fairbanks
Ralph Funk
Green Diversity Group
Erika Kantola
Wade Kenyon
Tiffany Lee
Bill Miller
Tamas Oltman
Bryan Ottinger
Pat Reagan
Steve Smith
Chuck Vrabel
Mandy Zhang
a clean energy provider
Strategic Alliances &
Key Vendors
$1 Billion in energy assets by 2015
“EPA Analysis
Confirms that America
Can Shift to Clean
Energy While Also
Reducing Energy Bills”
New York Times
6/21/2010
Installers / EPC / O&M contractors:
Abengoa Solar
Akeena Solar / Westinghouse
Apollo Era Solar
Erickson Electric
Derbigum
Nations Roof
Preferred Electric
Smart Solar
Standard Solar/Gridpoint
Schneider Electric
Teyma USA
Capital Sources:
SMX Capital
Bridge Bank
ACC Capital
MRE Capital
Marquette Equipment Finance
Meridian Bank NA
Commercial & Industrial Bank of China
Dalmatian Global Solar
Triton Capital Alliance
Key Professionals & Vendors:
Wildman, Harrold, Allen & Dixon LLP
Taylor English Duma LLP (tax & accounting)
The Reznick Group (solar-specific accounting)
Ryan Inc. (tax consulting)
Allianz
Abacus Construction Management, Inc.
DC Power Systems (design, logistics, supplier)
Enphase (microinverters)
Sat Con (inverters)
PV Powered (central inverters)
Solar Max Technology
Sunlink (racking & mounting systems)
OnGrid (utility billing analyses software)
PV Watts (system design, insolation forecasts)
RESPR Inc (forecast/output certification)
a clean energy provider
Market Potential
$1 Billion in energy assets by 2015
“Solar photovoltaics (including
modules, system components,
and installation) will grow from
a $36.1 billion industry in 2009
to $116.5 billion by 2019. New
installations reached just more
than 7 GW worldwide in 2009, a
sevenfold increase from five
years earlier.” Clean Edge 2010
The U.S. solar PPA
industry has raised at
least $2.5 Billion in
project financing
(that we know about
from press releases)
in the last 2 years.
a clean energy provider
Project Development
$1 Billion in energy assets by 2015
PHASE 1: ORIGINATION & SITE CONTROL
Customer signs Letter of Intent
Remote site survey & billing analysis
Job Estimate
Document preparation
Customer signs PPA, deposit check
PHASE 2: UNDERWRITING & FINANCING
Credit report
Title report
Financial modeling
Preliminary financing approval
Revise documentation as needed for lenders
Obtain installer bids
Select installer
Prepare Design Document and additional docs
Customer signs additional docs
Legal review
Final financing & project approval
PHASE 3: ENGINEER, PROCURE, CONSTRUCT
Acquire permits
Construction
Testing & commissioning
Inspections
Complete & submit rebate applications
PHASE 4: ASSET MANAGEMENT
Send welcome letter to customer
Set up customer in CRM and billing systems
Run system output maximization algorithms
Assign O&M contractor and panel washing contractors, set schedule
Maximize REC / carbon credit revenue via trading desk(s)
Although numerous
solar PPA providers
have emerged in the
last few years, our
focus is on the
underserved middle
market (small and
mid-size projects).
Nearly all of our
competitors build
only large projects
of 500 kW or
greater, and only in
a few states.
a clean energy provider
Competitive Advantages
$1 Billion in energy assets by 2015
Risk Mitigation
ADVANTAGE DESCRIPTION
PPA Capital
The limiting factor in the solar PPA market is financing for solar projects. With the
track record of our management team in raising capital for wind, solar, and real
estate projects, we believe we can beat most of our competitors in the capital
raising game.
Management
Unlike many of our competitors who have financial people as key management, we
bring decades of renewable energy project development experiences and real
estate construction experience to the party.
Full service
One would be hard pressed to find a clean energy company that can offer the full
range of services needed that we provide: land development, environmental engi-
neering & studies, design/build, permitting, feasibility studies, consulting, energy
efficiency review and deployment, solar/wind/geothermal/fuel cell resource as-
sessment and product design & installation, PPA / conventional financing, EPC
(engineer, procure, construct), LEED, service, O&M (Operations & Maintenance),
backup power/energy storage, monitoring, repair, and customer billing systems.
Energy Efficiency
Review (EER)
As a value added service, we offer every customer an EER as part of their PPA or
conventional financed purchase of a renewable energy system. Nearly any struc-
ture has “low hanging fruit” energy efficiency options – including lighting, tankless
water heaters, programmable thermostats, and more – that can reduce energy
demand with a fast ROI and lower the size of the required renewable energy sys-
tem.
RISK KEY POINTS HOW WE MITIGATE IT
Natural
Disaster Loss of equipment, loss of revenue
Insurance includes: property, business
interruption, builders & installation risk,
general liability, Errors & Omissions,
Directors & Officers, Worker’s Comp.
Lawsuits Liability for design, installation, officers &
directors exposure, etc. See Solar SPF coverage above.
IRS
Recapture
If the project sustains a major loss,
project owners are liable for recapture of
the Federal Investment Tax Credits,
Renewable Energy cash grants,
accelerated Depreciation
Solar SPF insures against the loss of all
federal tax related benefits to projects in
the event of a major loss that is not
rebuilt within one year.
REC
Revenue
Renewable Energy Certificates (RECs) are
tradable, include the carbon credits, and
are a major source of supplemental
revenue.
Solar SPF insures against these losses.
Building
Foreclosure
Property is foreclosed upon for any
reason.
Energy produced by our equipment can
be sold back to the utility.
Customer
Default
Customer goes out of business or cannot
pay for any other reason.
We disconnect their service, begin selling
the power back to the utility; we have
trade risk credit insurance & submit a
claim for payment (covers up to 2 years).
Construc-
tion Risk
Will the contractor complete the job, and
perform quality work that will last 20
years with minimal maintenance?
Hire only large EPC contractors that can
wrap the construction project with a
completion bond and make them provide
the Operations & Maintenance contract.
Pristine Sun LLC
$1 Billion in energy assets by 2015
For supporting documentation, Excel models, and sample executed con-
tracts, request our mutual NDA or send us your mutual NDA.
COMPANY PROJECT FUNDING POLICIES:
1. We will not pay “due diligence” fees or any other “up front” fees prior
to receipt of a binding, executed term sheet.
2. We will not grant exclusive funding rights to any party.
3. We are willing to be flexible on legal structure and equity participation
for funding partners, as needed.
Contact for more info:
Troy Helming at [email protected] or M 949-910-0442, OR
Joshua Crooker at [email protected] or M 913-424-9478.
Contact Info
California Office:
4695 MacArthur Court, 11th Floor
Newport Beach, CA 92660
Headquarters:
970 W. Broadway, Suite E-393
Jackson Hole, WY 83002-3000
www.PristineSun.com
Pristine Sun LLC
P: 307.200.7075
F: 866.593.9753