Renewable energy developers, even the ones who successfully evolved beyond the start-up phase, often need financing for a myriad of reasons. This includes, but is not limited to, speeding up project development, entering a new market, and/or facing other factors that may be preventing getting projects off the ground.
Leyline Development Capital may be a great source of capital for more established developers. This article briefly summarizes Development Capital, its use, and how this debt option may solve particular developer challenges.
Developer Profile for Leyline Development Capital
Developers must have an established company with several employees and a track record of successful projects in one or more markets (e.g., solar, energy storage, wind). Leyline Development Capital places emphasis on a company's fundamentals, familiar/approved technologies, sector dynamics, and underlying profitability as opposed to equity investor support. A Development Capital loan employs creative structuring and more usable capital for expenses, such as interconnection fees. The developer's projects already have value and that secures the loan. In other words, collateral from the current project, previous projects, and the overall corporate guarantee serve as a pledge of support.
The company is sharing in the profit interests of the project as compared with equity in the company. As the company grows, it can pay off the loan or flip the project to a long-term owner. In many cases, in fact, the projects are not held long term, but the company takes them until they are shovel ready and sells them to another party.
Development Capital has a loan timeline of between six months to three years.
Leyline Development Capital Debt for Encore Renewable Energy
In 2019, Encore Renewable Energy ("Encore") accelerated its development of solar and energy storage projects on underutilized property with a Development Capital loan from Leyline. The loan provided Encore with its next $1.8 million in capital to speed up development of community-scale solar arrays and energy storage facilities on sites, such as brownfields, landfills, parking lots, and gravel pits that can generate clean energy.
Encore successfully completed almost 70 projects with prospects for many more in the future. The Development Capital loan allowed the company to move faster in its project development process. This example shows Leyline Development Capital as a a catalyst for faster project work, backed by a company with a successful track record.
Encore understood Leyline's commitment to the clean energy sector and thorough understanding of the development process, as former clean energy developers.
For further discussion of Leyline Development Capital Solution for your company, please contact us at: https://leylinecapital.com/contact.