Nola Capital Corporation
Funding for waste-to-energy projects is an area of finance that requires a specialized expertise. As to be expected,
the more operating history a plant has, the easier it is to obtain financing on terms that are acceptable. However,
even startups can be financed if the right ingredients are in place.
Projects We Particularly Like
We are most interested in projects where we can take a portion of our compensation in the form of a long term
participation in the project’s future profitability.
There is currently an increased interest in clients wanting to expand their operations. There is also an increasing
interest in obtaining financing that protects against future costs of capital by locking in a cost of money on
terms that best fit each company's long term needs.
There are a number of ways to finance these situations, however, normal requirements will include financial
modeling, a solid business plan, a technology overview and other items that explain the project and support the
need for capital.
Uses For Financing
- Expansion of an existing plant
- Raising additional working capital by monetizing existing assets
- Cashing out shareholders
- Raising cash to complete an acquisition or to avoid using stock in the transaction
- Financing construction and initiating the operation of a new plant
Renewable Energy Financing
- Wind Power
A major issue for many projects is whether or not there is sufficient cash equity already invested in the deal to make
investors feel comfortable. If the principals in a project need some help raising equity, they normally need to show
investors how the project would be able to generate a 15% to 20% average annual return over several years.
The general outline for debt financing is:
debt payment is $300,000 per year, the contracted income needs to be at least $300,000.
- A project does not need to have a specified IRR.
- A project should throw off at least $1,300 to $1,400 of EBITDA for each $1,000 of loan payment.
- There has to be a minimum of 25% equity with a more comfortable amount being 30%. That means 70% to
- It is preferred that the technology be proven. Patents on the technology are helpful. If the technology is new, a
technology insurance wrap may be required.
- Projects selling electricity require a PPA. If a project is producing a product rather than electricity, firm Purchase
Orders from a reputable customer(s) are required.
- The amount of the PPA or the PO's must be sufficient to cover the debt payment. For example, if the annual
- Lock in a fixed interest rate for up to 40 years for qualified projects.
- The current interest rate is around 6.75% to 7.25%.