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PRIVATE SECTOR CAPITAL FOR PUBLIC GOOD
GrowSmart10/23/12
2:30 to 3:45 pm
© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 1
Charlie Spies, CEI Capital Management LLC
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
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
OUR MISSION
CCML is a capital management subsidiary of Coastal Enterprises Inc., whose mission is:
© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 4
“To help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.”
WHY NMTC DEALS WORK.…
22%•Risk Averse•Priced at
Market Rates
Loans80-90 %
•High Risk
•Most Expensive
Developer Funds
10-20%
Project Funding without NMTC
•Risk Averse
•Priced at Market Rates
Loans~60%
•Accepts Risk
•Low-Cost
•No repayment
NMTCFunds
~ 22%
• High Risk
• Most Expensive
Developer Funds
10-20%
With NMTC
THE NMTC PROCESS
• 100%Allocation Authorization for the project
(AA)
• 39%Tax Credits from the AA are sold to Investors
• 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%
A FEW ACTUAL PARTICIPANTS IN THE NMTC INDUSTRY
Projects in Low Income Communities: Community Forest in Grand Lake Stream; MMG in Presque Isle; GMRI in Portland;
CDEs
CDFI Fund
$26 Billion
$17.2 Billion placed to date
InvestorsLenders
Ochoco Lumber Co.
MAINE DEALS
© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 8
SAMPLE DEAL: MÖLNLYCKE
• 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
• Creates up to 85 new jobs, 90% of which will be hired locally
SAMPLE DEAL: MÖLNLYCKE
© 2012 CEI Capital Management LLC; Proprietary and Confidential; Not for Reproduction or Redistribution. 10
Investment Fund, LLC(Owns 99.99% of CDE)
Brunswick Landing MHC USA, LLC
(99% owned by MRRA; 1% owned BLRDC)
QALICB
Pooling Entity
CCM Community Development XXII LLC
CDE CCML
ManagingMember(0.01% )
NMTC EquityBangor Savings
BankLeverage Lender
Wells Fargo Community Investment
Holdings, LLCNMTC Tax Equity Investor
(Owns 100% of IF)
Molnlycke Manufacturing
US, LLC(Molnlycke Health Care US,
LLC is the guarantor)
Molnlycke Manufacturing
US, LLC(Molnlycke Health Care US,
LLC is the guarantor)
Lease Agreement
MRRA(99% owner of BLMHC, 100% owner of BLRDC)
Ground Lease Agreement
Brunswick Landing Realty Development
Corporation(1% owner of BLMHC)
Grand Lake Stream Woodlands$19.8 Million NMTC FinancingGrand Lake Stream Plantation, Maine
Finances 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
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
CEI CAPITAL MANAGEMENT LLC
2 Portland Fish Pier, Suite 206
Portland, ME 04101-4633
Charles J. Spies IIIManaging Director
(207) [email protected]