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Santa Fe New Mexico Public Financing

New Mexico

Public Finance Group

George K. Baum & Company's Renewables & Energy Infrastructure Group, formed in 2004, has progressively established itself as one of the leaders in debt financing for renewable energy facilities. We are one of a small number of firms that are able to access the debt capital markets to finance renewable energy projects. Our team has recently executed renewable energy project financings for wind, solar, renewable energy transmission, fuel cell and methane gas technologies. Additionally, our team has financed smart grid technology projects; coal-fired power plants and hydropower facilities for many municipal utilities.

George K. Baum & Company specializes in providing access to capital market long-term bond and loan financing for renewable energy and energy savings contracts. We understand the following types of renewable technologies:

Biomass
Biomethane
Fuel Cell
Geothermal

Hydropower
Renewable Energy Transmission
Solar PV
Wind
Specialty Finance Practices:


Our Renewable Energy Finance specialists provide a wide range of services to our clients.
These services include, but are not limited to, the following:

DENVER HOUSING AUTHORITY SOLAR PROJECT

 Denver Housing Authority Solar Project – Denver, CO
2.5 MW PV Solar Installation

Role: Served as Placement Agent for a $7 million Qualified Energy Conservation Bond which financed a 2.5 MW distributed generation roof mounted solar installation. The solar panels were placed on more than 600 housing units owned by the Denver Housing Authority. GKB has significant financing experience for both governmentally owned renewable projects and also developer owned projects with governmental power purchase agreements. GKB is one of the few investment banking firms that has completed debt financings for multiple renewable technologies including photovoltaic solar, wind power, commercial size fuel cells, methane gas capture, wood pellet biomass and anaerobic digesters.

NEW MEXICO RENEWABLE ENERGY TRANSMISSION AUTHORITY

New Mexico Renewable Energy Transmission Authority & High Lonesome Mesa Wind Farm 
Role: GKB served as Placement Agent for a $75 million taxable bond, financing both transmission upgrades and a portion of the capital costs related to a 100 MW wind farm. This project was the first non-rated nonrecourse bond issue for a wind project utilizing Clipper wind turbines completed in the U.S. capital markets.

BIO FUELS LLC METHANE GAS/FUEL CELL PROJECT

Bio Fuels LLC Methane Gas/Fuel Cell Project- San Diego, CA. Point Loma Project, Fuel Cell Project
Role: Served as Underwriter to finance the generation of renewable electricity from wasted methane gas at the Pt. Loma Wastewater facility of the City of San Diego. George K. Baum & Company structured the financing to take advantage of tax exempt bonds, the Investment Tax Credit Grant, SGIP rebates from the California PUC, and New Market Tax Credits. The methane gas is piped to fuel cells located on the campus of the University of San Diego and the City of San Diego which purchase power via a 10 year power purchase agreement.

NEW MEXICO RENEWABLE ENERGY TRANSMISSION AUTHORITY

New Mexico Renewable Energy Transmission Authority and the Edison Mission Energy High Lonesome Mesa Wind Farm – Torrance County, NM. 100MW Wind Farm and Transmission Upgrade
Role: Served as Placement Agent for a $75 million taxable bond, financing both transmission upgrades and turbine costs related to a 100MW wind farm comprised of 40 2.5 MW Clipper turbines. This project was the first non-rated non-recourse bond issue for a wind project utilizing Clipper wind turbines completed in the US capital markets.

CITY OF FORT COLLINS, COLORADO

City of Ft. Collins, Colorado. Qualified Energy Conservation Bonds
Role: Served as Underwriter for a $6 million Qualified Energy Conservation Bond ("QECB") which financed a portion of the City's new smart grid technology project.

MASSACHUSETTS SOLAR PROJECT

Massachusetts Solar Project – Westford, MA. 2 MW PV Solar Installation
Role: Served as Placement Agent for a $5.8 million Qualified Energy Conservation Bond which financed a 2 MW ground mounted solar installation.

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

Los Angeles County Metropolitan Transportation Authority, CA ($16.4MM)
Role: Originated a tax-exempt lease/purchase financing for an energy efficiency project at Metro's Support Services Center in Downtown Los Angeles that consisted of a rooftop mounted 1.2 megawatt solar PV system (at the time, the nation's largest solar project at a transit facility and the largest within the City of Los Angeles), new HVAC, new compressed air systems, lighting upgrades and an energy management system. In addition to $6.3MM in combined incentives from the Los Angeles Department of Water and Power, Southern California Gas Co. and the South Coast Air Quality Management District, the Authority's annual energy has been reduced by over $550M per year. The project and financing were procured under a public/private partnership.

COUNTY OF SONOMA, CA

 County of Sonoma, CA ($18.9MM and $3.4MM)
Role: Originated a tax-exempt and taxable lease/purchase financing was raised for the County's Comprehensive Energy Project ("CEP") that has at its centerpiece a 1.4 megawatt fuel cell cogeneration system, which is the largest installed in CA to date. The County's CEP is expected to reduce and replace 13.4 million kWh from the PG&E grid and reduce water consumption by 19 million gallons each year. Payments due under the 2 separate financing transactions are expected to be completely offset by utility savings. In addition to tax-exempt financing, the County also utilized its allocation of CREBs and another tax credit bond program called Qualified Energy Conservation Bonds ("QECBs") for a 750 kilowatt solar energy system.

 


Our Santa Fe-based Public Finance professionals provide a wide range of services to our client
These services include, but are not limited to, the following:

UNDERWRITING SERVICES

George K. Baum & Company is one of the nation's leading underwriters of municipal bonds. Our decades of experience, combined with the frequency in which we bring bond issues to market, helps our clients obtain competitive borrowing costs and some of the most attractive terms available in the market.

MUNICIPAL ADVISORY SERVICES

The synergy of local expertise and national resources is unique to George K. Baum & Company and is the foundation of our municipal advisory business. These services are significantly complemented by our underwriting experience developed while working on other transactions. It is vital for a municipal advisor to be in-step with the market. We believe that to be an effective municipal advisor for a client, a firm must maintain an active underwriting presence on other transactions. Our underwriting experience allows us to analyze all of our clients' outstanding bonds for refunding opportunities, monitor market conditions to guide the timing of our clients' bond sales and interpret market activity. This underwriting experience allows us to identify the most effective structures and sale methods available for our clients' bonds and to make other informed recommendations to our clients when engaged as a municipal advisor.

DIRECT PLACEMENT FINANCINGS

In assessing a client's financing options, we detail the pros, cons and risks of direct placement financings or debt issuances sold in the public markets based on the competitive nature of the proposals and a client's own credit rating. George K. Baum & Company has a frequent presence pricing bonds in the primary market and in the arrangement of direct purchases. This experience enables our clients to obtain some of the lowest borrowing costs and most attractive terms available.

DUAL TRACK FINANCING PROCESS

George K. Baum & Company has developed a unique "dual track" financing process to assist clients in determining the most appropriate financing structure for their offering. The dual track includes distributing a credit package to banks and rating agency(ies) for their review as part of the client's Request for Proposal ("RFP") process. George K. Baum & Company orchestrates the RFP and rating processes and prepares a comprehensive summary analysis to simplify the decision-making process. The dual track RFP process often yields extraordinary results for our clients because banks are put in a competitive situation.

FINANCIAL PROJECTIONS MODELING

With direct input from the client, George K. Baum & Company utilizes its proprietary financial models that forecast and stress-test the client's future financial viability after incurring new, or refinancing existing, debt. The financial modeling process assists the client in developing parameters around a prudent level of debt capacity. The model is an interactive tool that can be adjusted and changed in real time, allowing for informed and efficient decisions. It also serves as the basis for conveying the client's current and future financial performance to potential financing partners.

IN-HOUSE QUANTITATIVE CAPABILITIES

George K. Baum & Company is at the leading edge of quantitative analysis for municipal financings. Our commitment to quantitative analysis led to the formation of a specialized quantitative finance group whose sole responsibility is to develop and implement functional and analytical tools for our clients. Our quantitative professionals do not rely on any outside resources. All of the work performed for our clients is done in-house. Our significant experience in the area of debt structuring includes all aspects of refunding and cash flow modeling, such as crossovers, invested sinking funds and transferred proceeds. Our quantitative professionals specialize in performing a variety of important tasks, including;

• Bond Structuring
• Refunding Calculations & Innovations
• Pro Forma Analysis
• Escrow Restructurings
• Cash Flow Analysis

NEW PROJECT FINANCING

George K. Baum & Company assists our clients with a wide variety of debt financing for acquiring or expanding existing facilities or building new ones using publicly issued bonds or direct purchases. Our expertise in both the public markets and the direct purchase markets enables our clients to analyze the full range of financing possibilities.

RATING AGENCY PRESENTATIONS

George K. Baum & Company has developed proprietary methodologies for working with rating agencies to secure first-time, or obtain renewed, ratings for our borrowers. George K. Baum & Company devotes extensive resources to the development of each credit package with the intention of exceeding the expectations of the client and rating agencies.

REFINANCING & RESTRUCTURING DEBT

George K. Baum & Company assists our clients by taking advantage of market opportunities to refinance or restructure existing debt. Cash flow savings from reduced annual debt service can improve operating budget flexibility and be reinvested by our clients.

SWAP ADVISORY SERVICES

George K. Baum & Company has advised its clients on more than 400 interest rate swap transactions totaling more than $10 billion. Our Specialty Financial Products Desk works closely with our team and clients to implement an interest rate swap strategy that meets the financial needs of those clients.

 

215 Lincoln Avenue, Suite 104 | Santa Fe, NM 87501 | 303-391-5470