Advantage for Analysts has released version 4.0 of its Partnership Solution Set for structuring, analyzing and tracking tax equity partnership flip financings for renewable energy projects. Release 4.0 reduces the complexity financers and developers face when structuring projects with tax equity and debt, while also simplifying the tracking of diverse portfolios of project assets.
‘Recent cost increases for tax equity makes it more challenging for developers to satisfy their economic objectives,’ says Richard Homich, a principal at Advantage for Analysts. ‘The improved debt and cash sweep structuring in Release 4.0 makes it easier for tax equity investors, lenders and developers to balance the risks and rewards of renewable energy projects.’
In addition to these new capabilities, 4.0 also:
– structures up to five tranches of debt with debt reserves and simplifies debt structuring for deals with multiple project funding dates,
– structures cash sweeps based on timing, cumulative amounts and capital account balances,
– tracks pro forma and actual operating performance data,
– generates pro forma GAAP reports based on the hypothetical liquidation at book value (HLBV) methodology as well as the current period reconciling HLBV book entries based on actual results,
– simplifies the assessment of contributing or selling assets into a partnership structure by controlling the options with a simple input switch,
– structures tax equity partnerships with multiple projects going online at different dates,
– increases flexibility for handling asset depreciation (e.g., custom schedules, more built-in methods and original in-service date),
– structures deals with multiple yield-based flips and provides complete proof-of-yield reports, and
– automates the setting of key business parameters (e.g., amount of equity capital, shares) that meet economic objectives within feasible structures.
In addition, a redesigned structuring ‘cockpit’ provides ease of use and learning.
SOURCE: Advantage for Analysts
