Leyline’s Financial Lending Tools for Renewable Energy Developers
As the world of renewable energy continues to grow, Leyline Renewable Capital is there to propel developers to their maximum possible value. Unlike equity providers, Leyline offers alignment on project goals and gives developers control over their own destinies. We don’t just want ownership – we also want to help project developers at all stages of development finance their initiatives and ensure that their projects get off the ground.
To do so, we offer four main products briefly described below.
- Leyline Growth Capital: This financing targets developers who are new to the game, who have a lot of experience on the whole, but lack a track record in the development field. In other words, there are minimal assets on the balance sheet, but a seasoned team behind the venture. Leyline helps set up projects from the very start when they’re still just on the drawing board. With very new ventures, we expect some initiatives may fail, but others will succeed, and both we and the developer profit. Once the project sells, Leyline exits the equation. Leyline’s Growth Capital is typically a loan that has a three- to five-year time frame.
- Leyline Development Capital: Whereas Leyline’s Growth Capital begins when the project is simply an idea, Leyline’s Development Capital supports developers who are well established and using approved technologies. Developers must have demonstrated success in at least one market and at least three projects in the portfolio. We commit loans to projects that are already on the table and are beginning to get underway – our job is to finance to the point of shovel-ready. Developers who utilize this financing option may not hold the project long term, but pay off the loan and then flip it to a long-term owner. This is a loan with a timeline of six months to three years.
- Leyline Bridge Capital: Leyline’s Bridge Capital helps developers complete a project and get it ready to sell. These initiatives are already almost complete, but one small piece remains before everything can be locked down. We bridge that gap for a certain period of time and take care of the remaining expenses before a sale. Examples might include a security deposit or interconnection costs that are unexpectedly high. While banks would not fund projects in these situations, Leyline understands project development and stands ready to offer funding to bridge these unexpected problems. Leyline’s Bridge Capital is a loan that is typically less than one year.
- Leyline Build Capital: Our Build Capital goes beyond development and provides support to get projects started. Maybe there’s no time to delay or a sale hasn’t come through, but the developer wants to get a jump start on construction. Leyline fronts the costs for the start of a build. Leyline’s Build Capital loans may be between six months and up to two years.
Over the next few months, our newsletter will feature each of the four kinds of debt and provide case studies on how we deploy each type of financing. Be sure to subscribe to our newsletter to learn more about each of our offerings.