BioInvest Digest: Hot Route! New bioenergy financing pathway via Risk Transfer Guaranty Bonds™
February 27, 2013
BioInvest Digest, the most widely-read biofuels daily in the world, hailed the Risk Transfer Guaranty Bonds as "one hot route to happy financing, via the bond market." Jim Lane, the article's author and the editor of BioInvest Digest, stated that the RTG Bond structure was "One of the most interesting and compelling solutions to the problem of financing commercial-scale biofuels" presented at the recent Avalon Air Show in Australia. The article goes on to summarize the highlights and terms of the RTG Bond and concludes that "It’s a structure which just about any company looking at a first commercial project ought to investigate."
The Local Development Corporation of Crown Heights Selects Broadway Capital to Advise on Charter School Funding Initiative
Brooklyn, NY February 2013
Brooklyn's preeminent developer of affordable housing has selected Broadway Capital to structure a $200 million bond offering in support of its new initiative to develop school facilities for charter schools. Caple Spence, the Executive Director of LDCCH, stated that the need for charter schools has never been greater than it is today. After a quarter century of providing for seniors, LDCCH is now embarking on a bold program to solve the “chicken and egg” dilemma keeping charter schools from opening in the districts most in need of new educational opportunities. The problem is that a charter must have a facility in which to operate in order to receive an authorization, however without an authorization it is virtually impossible to secure a location. Broadway’s innovative structure will allow LDCCH, through a newly created Bermuda entity – NACS Ltd., to develop “incubator” facilities targeted to the needs of newly authorized charter schools. Through the use of its innovative RTG Bond™ structure, Broadway’s technology will allow NACS Ltd. to issue bonds directly with a rating of AA or better from a major rating company.
Risk Transfer Guaranty Bond™ Brought to Market by Broadway Capital
New York, NY May 2012
Broadway Capital announced today that it is introducing its Risk Transfer Guaranty Bond™ structure to the fixed income markets. The Risk Transfer Guaranty Bond™ (the "RTG Bond™") allows unrated entities to issue debt, within the RTG Bond™ structure, and have that debt receive the highest ratings. Currently yielding 4.5% or better, the RTG Bonds offer superior returns as compared to all similarly rated fixed income instruments. With a nominal term of five years and a duration of one year, RTG Bonds™ fit well within institutional investing parameters. Broadway is currently working with several entities, including private, municipal and not-for-profit organizations. It is expected that the typical deal size will range from $20 million to $1 billion, and that the first RTG Bond™ closing will occur mid-Summer 2013.
Town Center Developers Financing Patriot's Walk Mixed Use Development with $65 Million Equity Piece Facilitated By Broadway Capital
Wrightstown Borough, NJ October 2011
Town Center Developers ("TCD") will utilize the RTG Bond™ structure recommended by Broadway Capital to provide as much as $65 million of equity for their Patriot's Walk project. The structure provided by Stronghold Ltd. (Bermuda) and integrated by Broadway will significantly reduce the overall cost of money for this ambitious new real estate project. Sitting adjecent to the Joint Base McGuire-Dix-Lakehurst (New Jersey's new mega-base) the project includes over 500,000 square feet of new mixed use and residential buildings a state-of-the-art gas turbine power plant and new regional hospital. Broadway advised TCD on the implementation of the RTG Bond™ to provide 100% of the equity required to achieve a 60% LTV for the overall financing of the project. By covering the equity in the capital stack, TCD will be able to attract construction financing on very attractive terms.
Broadway Capital Advising Broadband Developer A2D
New York 31 January 2011
Broadway Capital has been retained by A2D, Inc. of Atlanta, Georgia, to advise it on the procurement of cash matching funding up to $27 million. A2D is the sub-recipient of a government grant of more than $59 million to install fiber optic broadband thru out targeted areas of Alabama. In cooperation with Trillion Communications, Inc., A2D will install fiber optic cable in nine rural communities, including providing the "last mile" connection. Already, A2D has commitments from the area's largest users of bandwidth and expects to commence construction in the Spring of 2011. Broadway has arranged first tranche financing utilizing government guaranteed loan programs and expects to close the first $4 million piece to coincide with the commencement of construction work on the project.
Elskoe & Elskoe Entertainment Close on $7 Million First Round Financing
St. Thomas, USVI December 2010
Elskoe & Elskoe Entertainment, Inc., owner and operator of the popular Paradise Point tramway and amusements, has closed on a first round financing of $7 million. This loan was facillitated through Broadway Capital, and carries a 90% guarantee from the USDA. Post closing, Broadway will continue to advise Elskoe on marketing, obtain additional financing and provide general business strategy. As an overall plan, Broadway and Elskoe intend to work together to revitalize the existing business and expand its offerings. Through their partnership, Broadway and Elskoe expect to significantly increase unique visits, revenue and profitability.