SOURCE: Advantage for Analysts LLC

January 29, 2008 10:55 ET

Advantage for Analysts Announces Expanded Support for Partnership Flip Financing Structures

SAN FRANCISCO, CA--(Marketwire - January 29, 2008) - Advantage for Analysts LLC ("Advantage"), a financial structuring and analysis software company, announces expanded support for a broader range of financing structures. Richard D. Homich, a Principal at Advantage explains, "Renewable energy deal financing has become more competitive and complex. Financers are reporting margin compression and the need to utilize a broader range of partnership structures to remain responsive and flexible. Advantage's Partnership Solution Set addresses these demands with consistent reporting that informs users on performance and risk." Partnership financing structures supported by Advantage's Solution Set include the full range covered in the recent survey and analysis completed by Lawrence Berkeley National Laboratory*:

Structure        Description

Corporate        Corporate entity develops project and finances all costs.
                 No other investor or lender involved. Corporate entity
                 utilizes Tax Benefits (no flip).

Strategic        Strategic Investor contributes almost all of the equity
Investor Flip    and receives a pro rata percentage of the cash & Tax
                 Benefits prior to a return-based flip in the allocations.

Institutional    Institutional Investor contributes most of the equity and
Investor Flip    receives all of the Tax  Benefits and, after the
                 developer has recouped its investment, all of the cash
                 benefits, until a return-based flip in the allocations.

Pay-As-You-Go    Institutional Investor finances much of the project,
("PAYGO")        injecting some equity up-front and additional equity over
                 time as the PTCs are generated. Includes a return-based
                 flip in the allocations.

Cash             Adds debt financing to the Strategic Investor Flip
Leveraged        structure. Likely involves Institutional Investors,
                 rather than Strategic Investors. Loan size/amortization
                 based on the amount of cash flow from power sales.

Cash & PTC       Similar to the Cash Leveraged structure, but the loan
Leveraged        size and amortization profile are based on the cash flow
                 from power sales plus a monetization of the projected
                 PTCs from the project.

Back             Virtually identical to the Institutional Investor Flip,
Leveraged        but with the developer leveraging its equity stake in the
                 project using debt financing.

*Source: "Wind Project Financing Structures: A Review & Comparative Analysis," Ernest Orlando Lawrence Berkeley National Laboratory, September 2007

"Modeling options and powerful analytics increase the likelihood our customers will develop feasible financing structures quickly and/or apply the structure appropriate to their renewable energy portfolio," added Mr. Homich. "Our customers count on us to give them the best modeling flexibility, transparency and analytics." More information about the Advantage Partnership Solution Set can be found at http://www.advantageforanalysts.com/afa-1/financing.pdf.

About Advantage for Analysts® LLC, http://www.advantageforanalysts.com

A financial structuring and analysis software firm located in San Francisco that provides solutions for Fixed Income Asset Management and Renewable Energy Partnership structuring. Babcock & Brown originally developed Advantage and has been using the software since 1999 to support its private equity and investment advisory business. Advantage became an independent entity in 2004.

Contact Information

  • Contacts:

    Richard D. Homich
    Principal
    Advantage for Analysts® LLC
    415.568.4815
    Email Contact