World-Leading Steel Innovation EB-5 Project in Rural ...
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Phase II Expansion of Profitable, Industry-Leading Project Advantage of Rural Targeted Employment Area Fully Financed Project with Bridge Equity Reduces Investor Risk Strong Government Support to Bring Back Manufacturing Industry Jobs to U.S. Heartland Prominent Equity Investors and a Trusted Regional Center under Arkansas Capital Corporation Pine State Regional Center Little Rock, Arkansas, USA + 1.501.374.9247 | www.eb5pinestate.com Investors Include: World-Leading Steel Innovation EB-5 Project in Rural Targeted Employment Area This presentation is only informational. This is not an offer to sell securities. You may not rely upon this presentation in connection with the purchase of securities in any jurisdiction. Any offer of securities will be made only by a confidential private offering memorandum, which will be the only authorized source of information for any securities offering. There are projections related to future business and financial performance in this presentation that may constitute forward-looking statements. Results may differ from these projections. Pine State Regional Center, its affiliates, and its personnel do not provide legal or financial advice. You should consult your own advisors before making any financial decisions.
Transcript of World-Leading Steel Innovation EB-5 Project in Rural ...
Phase II Expansion of Profitable, Industry-Leading Project
Advantage of Rural Targeted Employment Area
Fully Financed Project with Bridge Equity Reduces Investor Risk
Strong Government Support to Bring Back Manufacturing Industry Jobs to U.S. Heartland
Prominent Equity Investors and a Trusted Regional Center under Arkansas Capital Corporation
Pine State Regional CenterLittle Rock, Arkansas, USA+ 1.501.374.9247 | www.eb5pinestate.com
Investors Include:
World-Leading Steel Innovation EB-5 Project in Rural Targeted Employment Area
This presentation is only informational. This is not an offer to sell securities. You may not rely upon this presentation in connection with the purchase of securities in any jurisdiction. Any offer of securities will be made only by a confidential private offering memorandum, which will be the only authorized source of information for any securities offering. There are projections related to future business and financial performance in this presentation that may constitute forward-looking statements. Results may differ from these projections. Pine State Regional Center, its affiliates, and its personnel do not provide legal or financial advice. You should consult your own advisors before making any financial decisions.
Fact SheetJob Creating Enterprise (JCE) Big River Steel LLC
Project Location Mississippi County, Arkansas; adjacent to the City of Osceola
Project Financing Fully-financed $870 million expansion project, including $100 million bridge equity
Project Structure EB-5 capital replacing bridge equity
Targeted Employment AreaRural TEA. The project is not located within a Metropolitan Statistical Area, nor an area that contains a city with a population of 20,000 or more
Construction Start Early 2019
Expected Completion Date December 2020 initial startup, with work continuing into 2021
Projected Job Creation 2,998 jobs, more than 2.5x the necessary jobs
New Commercial Enterprises (NCEs) Pine State Infrastructure Fund III, LP and Pine State Infrastructure Fund IV, LP (the "PSIF Partnerships")
EB-5 Loan Term 5 years, plus up to 3 one-year extensions if necessary
Repayment in Case of I-526 Denial 60 business days
Capital Contribution USD $900,000
Administrative Fee USD $70,000
Investor Return 0.50% per year
Regional Center Pine State Regional Center, a subsidiary of Arkansas Capital Corporation
Enterprise TypePhase II expansion of only LEED-certified, high-grade specialty steel recycling and manufacturing facility in the world
Special Production TechnologyThe most advanced specialty steel production technology in the world, using the latest electric arc furnace technology with integrated cloud-based artificial intelligence
Raw MaterialsUsed cars, recovered steel, abandoned building steel and industrial steel stamping waste; no iron ore, coal or coke is used as input for production
Finished ProductsIndustry-leading, high-strength steel for complex, non-commodity steel applications, including automotive engines, jet turbines, drilling equipment, high-efficiency circuit transmission systems, and corrosion-resistant energy and chemical product pipelines
Primary Shareholders U.S. Steel Corp., Koch Industries Inc., TPG Capital, Arkansas Teacher Retirement System
Strategic Investors BNSF Railway, Entergy Corporation
PRO
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INVE
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TERM
SPR
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10,161 jobsmore than 8x
the necessary jobs1.67 million tons US$ 1.35 billion US$ 274 million 3.3 million tons US$ 2.7 billion US$ 500+ million
Job Creation
PHASE I OPERATING PROFILE PHASE I & II PROJECTED OPERATING PROFILE
Annual Production Capacit
Actual Revenue2018
Actual EBITDA2018
Annual ProductionCapacity
Annual Revenue Annual EBITDA
This presentation is only informational. This is not an offer to sell securities. You may not rely upon this presentation in connection with the purchase of securities in any jurisdiction. Any offer of securities will be made only by a confidential private offering memorandum, which will be the only authorized source of information for any securities offering. There are projections related to future business and financial performance in this presentation that may constitute forward-looking statements. Results may differ from these projections. Pine State Regional Center, its affiliates, and its personnel do not provide legal or financial advice. You should consult your own advisors before making any financial decisions.
Investments Made By：
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PHASE II OF SUCCESSFUL BIG RIVER STEEL PROJECT EB-5 PROJECT IN A RURAL TARGETED EMPLOYMENT AREA
TRUSTED REGIONAL CENTER WITH ROCKEFELLER ROOTS AND STRONG GOVERNMENT SUPPORTPine State Regional Center is owned by a 60-Year old economic development company, providing investor confidence and security through a long history of success and integrity.
Winthrop RockefellerThird-generation Member of Rockefeller Family
Former President of Arkansas Industrial Development Commission
37th Governor of Arkansas (1967-1971)
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At Arkansas Capital Corporation, we are very proud of the unique heritage of this non-
profit organization and its track record of success and integrity in providing capital for
the economic development of the State of Arkansas for more than 60 years. Pine State
Regional Center is a further extension of that mission and project finance focus, and
the Big River Steel project is a perfect example of what the EB-5 program is meant to
encourage and support. We invite you to visit us in Arkansas and learn more about our
organization and the truly exciting Big River Steel project.
-- Rush Deacon
Rush DeaconCEO, Arkansas Capital Corporation
Managing Director, Pine State Regional Center
Former President of Arkansas Development Bank
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Arkansas State CapitolLittle Rock, Arkansas
Clinton Presidential Center Little Rock, Arkansas
Headquarters of ACC and PSRC Little Rock, Arkansas
THE SUCCESSFUL OFFERINGIn July 2019, Pine State successfully completed the Big River Steel Phase I EB-5 financing, creating one of the most profitable EB-5 projects ever. Today Big River Steel is the world’s most advanced steel recycling plant and BRS has al-ready promoted economic growth, improved regional productivity, and created over 10,000 jobs.
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HIGHLIGHTS· Successful $60 million EB-5 financing
· More than 8x the necessary jobs created
· Created the world’s most advanced steel recycling company
· One of the most profitable EB-5 projects, with over
$260m EBITDA and $1.35bn in sales in the first year
of full operations (2018)
PARTICIPATE IN EXPANSION OF PROFITABLE, INDUSTRY-LEADING EB-5 PROJECT The PHASE II expansion will further cement Big River Steel’s position as a global leader by doubling its production capacity to 3.3 million tons annually and facilitating BRS’s ability to produce even higher grades of products by the end of 2020.
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The poster project of what EB-5 was meant to be.
-- Rep. Bob Goodlatte, Former Chairman of House Judiciary Committee (R, VA)
BRS OFFERS THE ADVANTAGESOF INVESTING IN A RURAL TARGETED EMPLOYMENT AREAThe project is located in Mississippi County, Arkan-sas, which is classified as a rural area due to the fact that the county is not with-in a Metropolitan Statistical Area, and does not contain a city with a population of 20,000 or more.
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STRONG GOVERNMENT SUPPORT TOBRING BACK MANUFACTURING INDUSTRY JOBS TO THE U.S. HEARTLANDLargest private manufacturing project in the history of the State of Arkansas.Supported at the Federal, State and Regional levels with grants, loans, and tax-exempt financing, Big River Steel is an exciting opportunity for EB-5 investors.
Mike Beebe45th Governor of Arkansas
Bill Clinton42nd President of the United States40th & 42nd Governor of Arkansas
Asa HutchinsonCurrent Governor of Arkansas9
FULLY FINANCED BRIDGE EQUITYSTRUCTURE FROM PREMIER INVESTORSREDUCES EB-5 INVESTOR RISKPHASE II has already been fully financed with $870 million, including $100 million bridge equity.
Charles KochChairman and CEO of Koch Industries
Forbes - The World’s Billionaires 2019 Ranking #11
David KochVice President of Koch IndustriesForbes - The World’s Billionaires 2019 Ranking #11
Warren BuffettCEO of Berkshire Hathaway
Forbes - The World’s Billionaires 2019 Ranking #310
BRS has attracted invest-ments from companies owned by three of the top ten richest people on the Forbes List, as well as one of the five largest private equity firms in the world.
