An RTG Bond™ is a versatile and flexible way to finance capital intensive projects. Proceeds from the RTG Bond™, as funds from the investment account, can be injected into the capital stack as (just) the equity component, or the entirety of the financing. Unique to the RTG Bond™ is the capacity to offer developers up to 26 months from closing before the first payment is due – relieving cash flow just when funds are most needed for the project itself.
To qualify for the RTG Bond™ program, a project must have strong underlying economics, thorough, comprehensive and detailed pro forma financial projections, an experienced and well qualified management team and a clear exit strategy no more than five years out. The expected minimum annual cost for the RTG Bond™ financing is 10% per year on cash provided.
In order to attract bond purchasers – the other side of the transaction – it is imperative that the project not only make economic sense, but that the underwriting and due diligence are unassailable. Every item in every pro forma must be able to be verified and validated by an independent third party.
In addition to providing a structure to raise capital with the RTG Bond™, Broadway Capital can perform due diligence sufficient for the most stringent reviews. Our in-house analysts, paired with an extensive network of professionals, are able to analyze a wide variety of project types. A few of our many previous due diligence assignments include projects encompassing real estate development, “green” energy production and distribution, communications infrastructure, movie production (facilities and talent), automotive production, call centers, pharmaceutical clinical testing facilities, finance and insurance, healthcare, hospitality and tourism.
Combining the ability to understand the “Project” in project finance and having the tools to structure the appropriate combination of owner’s equity, RTG Bond™ financing and commercial debt lets Broadway provide low cost and high value funding solutions.