NEW YORK--()--Reznick Capital Markets Securities (RCMS), a subsidiary of leading accounting, tax and advisory firm CohnReznick LLP, announced the completion of advisory services for three major northeast solar projects. The activity reinforces the group’s growing profile in renewable energy structuring and negotiations as well as its expertise as tax equity advisors.
“Our depth in Renewable Energy allowed us to quickly assess the best approach that often lowers transaction costs and legal fees for our clients”
The renewable energy projects comprised of a 5.702 MW project in Massachusetts where three municipalities jointly purchased the energy from a ground-mount installation, a 8.146 MW net metering project at the New Jersey properties of a leading national food distributor, and a 12.820 MW portfolio of solar distributed generation projects with the Long Island Power Authority (LIPA). RCMS worked with independent asset management firm Capital Dynamics, as well as Renewable Energy financing leader US Bank, to advise on how to best structure tax equity financing for these projects. The result was a lease pass through structure that allowed Capital Dynamics to take advantage of the most economic financing structure for this portfolio while also presenting an acceptable risk and return profile for US Bank.
The deal also highlights Reznick Capital Markets Securities experience of working with infrastructure funds entering the Renewable Energy space and looking to understand the tax equity market; strongly positioning them to work on similar projects in the future.
“Our depth in Renewable Energy allowed us to quickly assess the best approach that often lowers transaction costs and legal fees for our clients,” said RCMS Vice President Conor McKenna, adding “No two deals are ever the same. The individual needs of developers and investors, overlaid with local requirements, state incentives and federal tax issues mean that the deal structures need to be carefully crafted.”
Two of the three projects had Solar Renewable Energy Credits and as a result, the deal was structured to take into account both the power and SREC revenue streams. In addition, the portfolio took advantage of the US Treasury Department 1603 Cash Grant Program.
Due to the many challenges associated with Renewable Energy projects, when it comes to structure, valuation and finding tax equity partners, establishing the best structure for all parties and getting it done efficiently are critical steps to a successful close - especially in a difficult investing environment. CohnReznick’s track record and experience in this space facilitated the success of this transaction and helped further Capital Dynamics’ investment objectives.
With origins dating back to 1919, CohnReznick is currently the 11th largest accounting, tax and advisory firm in the United States, combining the resources and technical expertise of a national firm with the hands-on, entrepreneurial approach that today's dynamic business environment demands. CohnReznick serves a large number of industries and offers specialized services for Fortune 1000 companies, middle-market firms, international enterprises, government agencies, not-for-profit organizations, and other key market sectors.
Headquartered in New York, NY, CohnReznick serves its clients with 27 offices, more than 280 partners, and 2,000 employees. The firm is a member of Nexia International, a global network of independent accountancy, tax, and business advisors. For more information, visit www.cohnreznick.com.
About Reznick Capital Markets Securities
As part of CohnReznick, Reznick Capital Markets Securities (“RCMS”) offers a comprehensive financial advisory platform for the renewable energy industry. RCMS provides solutions for tax equity, equity, debt, asset sales or purchases. RCMS represents financial institutions, infrastructure funds, strategic participants (IPPs and utilities) and more than 60 wind, solar, biomass and other alternative energy developers nationwide. Reznick Capital Markets Securities has lead the financing of over 850 MW in solar, wind and biomass projects with a total deal value in excess of $2.3 billion. Moreover, RCMS has placed over $2 billion of assets in tax equity financing and $300 million of asset value in sale placements and asset sales.