Accelerate Your Renewable Energy Development with Leyline's Bridge Capital

Leyline Renewable Capital offers another financing instrument for developers entitled, "Leyline Bridge Capital." Bridge capital is suitable for late-stage projects that have yet to be constructed. It gives developers money to cover short-term expenses or take advantage of a time-limited opportunity. Developers are typically experienced, and collateral to repay the loan is satisfied with the project or corporate guarantee. Loans are short term - a year or less.

A project's capital needs are highest right before construction when equipment and materials must be bought and contractors paid. There are also long-term consequences if construction runs over budget or behind schedule. Bridge capital, therefore, tends to be procedurally complex with a high bar for accessing funds.

There are a couple of scenarios that utilize bridge capital financing before and after project construction.

• Before Construction: In this scenario, the developer acquires the land rights, permits, interconnection agreements and any other PPAs. The developer sells the developed project to an investor and receives a development fee in return. The investor arranges for bridge finance for the construction and then owns and operates the project.

• After Construction: In this scenario, the developer uses bridge financing from a lender. It can be a construction loan that is repaid after completion of construction. Alternatively, a lender may be repaid at completion of construction with funds from a tax investor, who comes in once the project produces tax credits.

Leyline's Bridge Capital solution can have considerable benefits for renewable energy developers that are ready to start building their project. If a permanent financier is lined up, but the asset is not acquisition-ready, or if the market for the asset is not yet confirmed, a short-term bridge loan may be all that is needed for a developer to finish construction and move forward.

Intersect Power: Shrinking Project Delays with Leyline's Bridge Capital

Intersect Power, a clean infrastructure company, had delays on a portfolio opportunity and turned to Leyline Renewable Capital for financial assistance. Intersect Power had several solar projects underway, and deposits were quickly needed alongside the execution of offtake agreements. A $50 million bridge loan allowed Intersect Power to move its portfolio forward as well as make a shift toward long-term ownership of its projects.

Intersect Power trusted Leyline's commitment to the clean energy sector, and as former clean energy developers, Leyline has a thorough understanding of the development process.

For further discussion of the bridge debt option for your company, you can contact us here.