CLI provides 100% of project funds for Energy Projects.  Click the appropriate section below that applies to you.

Energy PROJECT FUNDING

NON-PROFIT ENERGY PROJECTS

To-be-built Energy Projects, such as Trash to Energy, Combined Heat Power (Co-Generation), Solar Farms, Wind Farms and other similar projects, is one of the fastest growing industries in the world.

 

Non-Profit entities can reduce or eliminate its utility bills by having CLI provide 100% of the funds to implement an Energy Project.  By taking control of its own utilities, a Non-Profit can no longer be subject to increasing utilities costs.  The Non-Profit engages a competent Developer-Operator to design, implement and run the energy producing facility.

 

Non-Profit Public Utilities can utilize above energy projects to provide cleaner, and in some cases, lower cost energy to its customers.

Project Structure

CLI provides 100% of the development costs for Energy Projects, in exchange for a CLI Lease with $1.00 buy-out at the end of the lease term.

LEASE vs PPA:

 

 

 

 

 

 

 

 

 

 

 

 

LEASE TERM:

 

LESSOR:

 

LESSEE:

 

BUY-OUT:

CLI will be the owner of the equipment and real estate (if real estate is included), wherein CLI leases the project to the Non-Profit entity .  The Non-Profit Energy User would, in turn, enter into either a (1) Joint Venture ("JV") Agreement with the project Developer-Operator or (2) an Operations & Management  ("O&M") Agreement with the project Developer-Operator, wherein the Developer-Operator owns 100% of the operations for the CLI lease term plus 100 years of options in the O&M Agreement.

 

PPAs and Off-Take Agreements for to-be-built energy projects are now considered "Leases" under FASB's lease accounting guidelines adopted on 02-25-16.  PPAs and Off-Take Agreements are to be reported as a liability on the Energy User's Statement of Financial Position for the full amount of the contemplated purchases.  Under the CLI Lease, the liability on the Energy User's Statement of Financial Condition can be significantly reduced, as opposed to a PPA or Off-Take Agreement, subject to approval of the Energy User's auditors.

 

10-30 years (limited to Useful Life of project)

 

CLI

 

Non-Profit entity (Energy User)

 

The Non-Profit Energy User or the JV between the Energy User and Developer-Operator buys out CLI at the end of the lease term for $1.00 and then the Non-Profit continues its JV Agreement or Operations & Management Agreement with the Developer-Operator under ten-10 year options.

Minimum Requirements

MINIMUM PROJECT COSTS:

 

 

 

MAXIMUM PROJECT COSTS:

 

 

NON-PROFIT ENTITY's CREDIT:

$10 million

Above minimum costs exclude construction interest, finance and closing costs, as they do not apply under a CLI Lease.

$600 million (maximum tranche).

 

 

BBB- stable or better rated for Universities or Healthcare.

 

A- stable for Governments (minimum population is generally 50,000 for a City and 100,000 for a County).

 

INVESTMENT GRADE or LARGE COMPANY

ENERGY PROJECTS

To-be-built Energy projects, such as Trash to Energy, Combined Heat Power (Co-Generation), Solar Farms, Wind Farms and other similar projects, is one of the fastest growing industries in the world.

 

An investment grade company or unrated company with at least $150 million in consistent Annual Net Income (the "Company") can reduce or eliminate its utility bills by having CLI provide 100% of the funds to implement an Energy Project.  By taking control of its own utilities, the Company can no longer be subject to increasing utilities costs.  The Company engages a competent Developer-Operator to implement and run the energy producing facility.

Project Structure

CLI can consider providing 100% of the development costs for Energy Projects in exchange for a CLI Lease with $1.00 buy-out.

CLI will be the owner of the equipment and real estate (if real estate is included) wherein CLI leases the project to the Company.  The Company enters into either a (1) Joint Venture ("JV") Agreement with the project Developer-Operator or (2) an Operations & Management ("O&M") Agreement with the project Developer-Operator with ten 10-year options after the CLI lease term.

 

PPAs and Off-Take Agreements are now considered "Leases" under FASB's lease accounting guidelines adopted on 02-25-16.  PPAs and Off-Take Agreements are to be reported as a liability on the Energy User's Balance Sheet at the full amount of contemplated purchases.  Under the CLI Lease, the liability on the Energy User's Balance Sheet can be significantly reduced, subject to approval of Energy User's auditors.

The CLI lease term is 10-30 years (limited to useful life of equipment).

 

CLI

 

The Company (Energy User)

 

At the end of the CLI lease, the Company buys out CLI for $1.00 and continues its JV Agreement or Operations & Management Agreement with the project Developer-Operator under ten 10-year options.

LEASE vs PPA:

 

 

 

 

 

 

 

 

 

LEASE TERM:

 

LESSOR:

 

LESSEE:

 

BUY-OUT:

 

Minimum Requirements

MINIMUM PROJECT COSTS/PRICE:

 

 

 

 

MAXIMUM PROJECT COSTS/PRICE:

 

 

COMPANY's CREDIT:

$10 million

Above minimum costs exclude construction interest, finance and closing costs, as they do not apply under a CLI Finance Lease.

 

$600 million (maximum tranche).

 

 

Investment Grade Company (BBB- or better rated) or unrated with generally at least $150 million in consistent Annual Net Income.

 

 

 

Credit Lease Investments, LLC

HEADQUARTERS

CLI's Senior Partners' office is located in Vernon Hills, Illinois, a northwest suburb of Chicago.  CLI's Project Partners are located nationwide.

GET SOCIAL

CLI does not provide tax or accounting advice.  Each Lessee and Sublessee should consult its own tax and accounting professionals regarding the CLI Lease.

© Cli (2018)