Dec 13, 2019

Challenge

Generate Capital contacted AVANA Capital about the need to finance the construction of energy efficiency projects for a public school district in Florida. The loan request was time-sensitive, and Generate Capital needed a lender who could be flexible with regards to the documentation requirements. For the loan, AVANA provided financing for energy-efficient equipment (high-performance lighting, HVAC, and energy management systems) for the Hillsborough County Public School district in Florida.

Generate Capital required an experienced financing partner in a very specialized field. Currently, not many lenders understand the complexities related to financing energy efficiency projects and, thus, finding a qualified financing partner, like AVANA Capital, was critical to the success of the project.

Generate Capital had entered into an Energy Savings Contract with the Hillsborough County Public School District, through which the school district would save money on energy bills and then share a portion of its savings with Generate Capital as compensation for its investment.

One of the challenges for Generate Capital and AVANA Capital was that some standard documentation requirements that are typically required by traditional bank lenders were not available prior to funding. Thus, Generate Capital needed a financing partner that could get comfortable with the risks of the project without receiving all of the typical paperwork. Additionally, Generate Capital needed the loan to close quickly to keep its general contractor continuously working on the project.

Loan Details

  • Project Type: Renewable Efficiency
  • Loan Type: Construction
  • Loan Amount: $39 million
  • Project Description: Public School District
  • Location: Hillsborough, FL

Key Takeaways:

  • Closed and funded quickly with minimal documentation
  • First loan with new borrower
  • Jobs created, positive environmental impact

 

Although AVANA Capital had never financed an energy efficiency construction loan, the underwriting team was able to quickly identify the collateral, analyze the risk, and produce the liquidity for Generate Capital – enabling the company to continue with the construction of its projects.

 


Solution

After receiving Generate Capital’s time-sensitive request, AVANA Capital’s Renewable Energy Team immediately began the process of securing the $39MM energy efficiency construction loan. Although AVANA Capital had never financed an energy efficiency construction loan, the underwriting team was able to quickly identify the collateral, analyze the risk, and produce the liquidity for Generate Capital — enabling the company to continue with the construction of its projects.

The WHY Behind the Deal

AVANA Capital is focused on both stimulating the U.S. economy through job creation as well as developing clean energy sources across the country. Through projects like this one, AVANA Capital promotes and supports the use of energy efficiency solutions, expanding the impact of clean energy in the lives of American citizens. In this case, the use of energy efficiency equipment — including lighting, HVAC, and energy management systems —was enabled in a large school district, making a meaningful positive impact on our environment as well as the citizens and students of Hillsborough County.

See full Generate Capital case study

Meet our Renewable Energy Team

To learn more our renewable energy practice and our financing capabilities, please contact:

Walter Cuculic, Senior Vice President – Renewable Energy
walter@avanacapital.com

Sanat B. Patel, Managing Partner and CSO
sanat@avanacapital.com

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