- Advised leading Chinese private equity firm, sovereign wealth fund and strategic investor in the successful acquisition of the $3.2 billion acquisition of the Phillips NV LED lighting business. Was successfully awarded the bid in Q2: 2015. Bid was later blocked by the U.S. government on the basis of strategic security objections by the Justice Department in Q1: 2016.
- Advised Chinese LED manufacturer on participating and financing ESCO-model LED municipal street light projects in Mexico and othermarkets in Latin America, leveraging debt from development finance institutions.
- Engaged by an Arctic private equity fund to support particular fundraising activities and portfolio management activities.
- Advising and supporting private Chinese development group on international investments including infrastructure development and power generation project development.
- Engaged by Chinese private equity firm to support the expansion of its LED manufacturing portfolio company into select European markets.
- Advising several U.S. clients (including a solar developer) about the requirements of the Office of Foreign Assets Control compliance; U.S. Department of Treasury, and opportunities coordinated through the U.S.-Cuba Business Council associated with doing business in Cuba; ongoing.
- Advised the board of directors of Gestamp S.p.A., a leading international solar PV and wind power developer, EPC and asset owner, in the selection of an international investment banking concern (before affiliating with its own owner broker-dealer) for the disposition of the North American operational and development portfolios of Gestamp.
- Engaged by the sponsor of a high voltage energy efficiency project to support the development of a project designed to reduce the fuel consumption of diesel generators supplying power to a 40 MW isolated grid.
- Engaged by the developer of a waste-to-energy project to prepare and submit tender bid documents for a 25-year waste treatment facility concession designed to process 100 tones per day of solid municipal waste and generate 3 MW+ power.
- Engaged by a Central American corporate agriculture producer to advise on, structure, and raise growth capital.
Current Engagement: Pineapple Express
- The Company is an established “Top 10” agricultural Company dedicated exclusively to producing and exporting fresh pineapple
- The Company is seeking capital to implement a growth strategy to expand its current land holdings and double its current production capabilities (the “Project”) to satisfy increases in demand by current and new clients
- The Project capital requirements areestimated at approximately US$ 60 million
- The Company is seeking senior debt to finance the Project and however may consider equity investments by strategic investors
- CNS is the exclusive financial advisor to the Company
US$ 10 million
US$ 17 million
US$ 11 million
US$ 6 million
US$ 17 million
US$ 61 million
Refinance Long Term Debt
Total Expansion Project Capital Requirements
Market & opportunity
- Costa Rica is the single largest nation producer of fresh pineapple, responsible for 11.5% of global production. Plantations within Costa Rica are on average demonstrated to be significantly more productive than all other leading nations, except Indonesia. In 2014, Costa Rican pineapple plantations were 53% more productive than the average of leading nations.
- Market studies indicate that the lack of consistent supply of pineapple holds down US demand. Buyers in Europe and Turkey have expressed interest in increasing their purchase orders with the the Company, but current customers purchase all available production.
- For these reasons, the Company is looking to double its current capacity to satisfy increases in demand by its current customers and new clients, while also taking advantage of the exceptional pineapple production productivity in Costa Rica.
Project social impact
The Project will contribute significantly the the community and local economy:
- Job Creation: As of September 2016, the Company was the largest employer in the region with 900+ direct employees. The Project is expected to create 650 additional direct permanent jobs and could result in the creation of additional indirect permanent jobs (e.g. third-party distributors).
- Environmental Protection Education: As part of its CSR practices, the Company develops initiatives to educate and encourage local communities to develop natural conservation values. The project will allow AU to scale up investments in environmental education, which will result in increased levels of public awareness and understanding of conservation issues.
Our Proprietary Investment Vehicle: CNS Latin American Energy Efficiency Finance Co.
Problem we’re Solving: In Mexico, the energy cost of public street lighting is approximately US$ 0.17/kWh,* representing the second highest expense for a Mexican municipality, second to payroll. Since 2002 these costs have increased by 32%; since 2012 they have has risen at a rate of 6% per year.
The solution: (1) Convert low efficiency street lights into high efficiency LEDs, (2) reduce electricity consumption between 50-65%, and (3) generate cash savings from reduced expenditures on electricity (4) reduce harmful CO2 emissions, (5) and improve the safety and security conditions for citizens and small businesses. These are called street light projects or SL Projects (“SL Projects”).
How we’re doing it, the Investment Vehicle: A single purpose finance facility (the “Facility”) that lends senior debt to Integrators implementing municipal SL Projects.
Facility size: US$ 250 million; comprised of US$ 50 million from investors (“Investors”) leveraged with US$ 200 million in debt from development institutions such as OPIC, NADB, IFC and IDB (collectively, “DFIs”).
Deployment: The Facility Sponsor Group has identified a pipeline to deploy upwards of US$ 250 million within 3-4 years into 15-20 projects.
Capital structure: The Facility issues 100% of SL Project costs in senior secured debt to an Integrator’s project company. The senior debt is comprised of 80% DFI debt and 20% Investor capital. Investor capital maintains a minimum mezzanine security position in the capital hierarchy throughout the life of the loan
Returns: Anticipated IRR to Investors of 12.5%, net of hedging costs.
Impact investment: The Facility’s investments provide significant environmental and social impacts in the form of reduced CO2 emissions, improved security and safety conditions for citizens small businesses