Project Partners

Green Conversion Systems LLC

Background

Scully Capital provided financial advisory services and assisted GCS with the development of a financing plan to support the development of a $250 million waste-to-energy project in Hawaii.  Specific tasks included:

  • Reviewing feasibility studies with particular regard to capital cost estimates, operating cost estimates, revenue estimates, construction period and phasing, general construction arrangements, general operation and maintenance arrangements, and environmental considerations;

  • Establishing major project assumptions and key evaluation criteria to be used in establishing the financial model in consultation with GCS and its technical consultants.

  • Undertaking economic and financial analysis of the Project by developing customized and comprehensive financial models to examine various financing options.

  • Identifying the key project risks and outline methods for mitigating and sharing such risks.

  • Performing detailed cash flow evaluation and sensitivity analyses using the financial model.

  • Advising on the sources of financing, both taxable and tax-exempt, which may be applicable to the Project and meeting with potential lenders and investors to establish the likely terms and conditions of the financing.

  • Comparing the cost, terms, conditions, risk appetite and security requirements of potential lenders and equity on the basis of the contractual framework and the intended Project structure.

Challenges & Solutions

  • Scully Capital was tasked with developing a financing package that not only provided for the lowest overall cost of capital but also complied with the requirements of the County’s RFP and P3 contracts.
  • Scully Capital worked with capital providers, ranging from taxable and tax-exempt lenders, institutional investors and commercial banks to draft a number of options for the client to consider.

Summary & Results

Project placed on hold by County of Hawaii.