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Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
Charlie Spies - Private Sector Capital for Public Good
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Charlie Spies - Private Sector Capital for Public Good

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  • Do people care that developers require a high rate of return? Can you just take out “Most Expensive” for this part of the stack? Can we reflect that the loans in an NMTC deal may be lower risk because of the lower loan to value (if this is true)?
  • I took out “are sold” because the credits aren’t sold at the full 39%
  • I like that you added examples of projects
  • Transcript

    • 1. PRIVATE SECTOR CAPITAL FOR PUBLIC GOOD GrowSmart 10/23/12 2:30 to 3:45 pmCharlie Spies, CEI Capital Management LLC © 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 1
    • 2. PLACEMENT OVERVIEW• $674.6 MM in QEIs to date• 75 Projects Closed in 26 States• $1.92 billion in total private capital investment• 11,581 direct jobs preserved or created• 2,443,686 acres of timberlands committed to sustainable forestry practices and retained as working forests• 72 megawatts of green energy and over 1,195,000 gallons of alternative fuel generated annually © 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 2
    • 3. PLACEMENT OVERVIEW IN MAINE • $221.3 MM in QEIs to date • 18 Projects Closed • $557 million in total private capital investment • 1,776 direct jobs preserved or created • 1,830,500 acres of timberlands committed to sustainable forestry practices and retained as working forests © 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 3
    • 4. OUR MISSION CCML is a capital management subsidiary of Coastal Enterprises Inc., whose mission is: “To help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.”© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 4
    • 5. WHY NMTC DEALS WORK.…Project Funding without NMTC With NMTC • Risk • Risk Averse Averse Loans ~60% • Priced at Market Loans80-90 % • Priced at Market 22% Rates Rates • Accepts Risk NMTC Funds • Low-Cost ~ 22% • No • High Risk repaymentDeveloper • Most Developer •High Risk Funds Expensiv Funds •Most 10-20% Expensive 10-20% e
    • 6. THE NMTC PROCESS • 100% Allocation Authorization for the project (AA) Tax Credits from the AA are sold to Investors • 39% • 22%. Low-Cost Funding is created for Qualified Projects•39% tax credit is received by investor over a 7-year period: 5% + 5% + 5% + 6% + 6% + 6% + 6%
    • 7. A FEW ACTUAL PARTICIPANTS IN THE NMTC INDUSTRY Ochoco Lumber Co. Lenders Investors $26 Billion CDEsCDFI Fund $17.2 Billion placed to date Projects in Low Income Communities: Community Forest in Grand Lake Stream; MMG in Presque Isle; GMRI in Portland;
    • 8. MAINE DEALS© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 8
    • 9. SAMPLE DEAL: MÖLNLYCKE • Creates up to 85 new jobs, 90% of which will be hired locally • Allows Maine-based subsidiary Rynel Inc. focused on Maine. • Prevents building this expansion in Finland, saving 80 existing positions • Developed partnership with local community college to provide job training for up to 127 individuals© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 9
    • 10. SAMPLE DEAL: MÖLNLYCKE Pooling Entity Wells Fargo Bangor Community Investment Savings Bank Investment Fund, LLC NMTC Equity Holdings, LLC Leverage Lender (Owns 99.99% of CDE) NMTC Tax Equity Investor (Owns 100% of IF) CDE CCML CCM Community Managing MRRA Development XXII LLC Member(99% owner of BLMHC, (0.01% )100% owner of BLRDC) Brunswick Landing Realty Development Corporation (1% owner of BLMHC) QALICB Molnlycke Manufacturing Ground Lease Agreement Brunswick Landing MHC Lease Agreement US, LLC USA, LLC (Molnlycke Health Care US, (99% owned by MRRA; 1% owned BLRDC) LLC is the guarantor) © 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 10
    • 11. Grand Lake Stream Woodlands $19.8 Million NMTC Financing Grand Lake Stream Plantation, MaineFinances 21,949 acres of working forest to facilitate sustainable harvesting, protect ecotourism and provide land for low-income housing development. Preserves over 100 Jobs Equity Investors: Bangor Savings Bank & U.S. Bancorp CDC Lenders: Bangor Savings Bank & Lyme Timber Company Manager: CEI Capital Management LLC, a subsidiary of Coastal Enterprises, Inc. (A Maine non-profit corporation) Partnered with Northern Forest Center Downeast Lakes Land Trust March 26, 2009
    • 12. MAINE STATE NMTC HIGHLIGHTS• Modeled on Federal Program• 39% credit over 7 years• Broader Geographic Footprint • Federal Census Tracts Qualify • Municipalities w/ historically high unemployment rates qualify• Can be combined with Federal or stand alone• $10 MM project cap unless creating or retaining 200 jobs, then up to $40 MM• $250 MM available• Administered by FAME© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 12
    • 13. CEI CAPITAL MANAGEMENT LLC2 Portland Fish Pier, Suite 206 Portland, ME 04101-4633 Charles J. Spies III Managing Director (207) 535-2932 cjs@ceimaine.org

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