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| | Intermodal
Facilities Financing, Funding, Lending & Investing...
Preparing an
intermodal
facilities financing package (development, construction and/or permanent
funding solutions)  in today's capital markets usually means a structured
financing approach solution is a fundamental program requirements. The key
industry players for intermodal facilities financing include (but are not
necessarily limited to):
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Federal Government.
The federal government is a key player and can play a role at the
construction level and/or the permanent funding level, but has very limited
impact at the pre-development phase financing level and very little impact
at the pre-construction financing level because most development-related
finance kicks in AFTER you have completed construction. Having said
that, the availability of financing pursuant to a federal entitlement can be
used to create additional funding leverage at the pre-construction
level. If you are a start-up entity, don't bother with making an
application for funding via the Transportation Infrastructure Finance &
Innovation Act (TIFIA) because it
would be unrealistic to assume a start-up company would be able to garner an
investment-grade credit rating for the project's senior long-term
debt. The Railroad Rehabilitation Improvement Financing ("RRIF")
program is the entitlement financing mechanism you should be focusing on
because it can provide subsidized financing directly from the federal
government. This would include both construction and permanent phase
financing. Some pre-construction costs may in fact be absorbed in a
refinance if they represent a qualified use. Check with Rainmaker for
details. |
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State Governments.
The state level entities can make a real difference and you should be
prepared to complete a comprehensive entitlement review so that you don't
leave any money on the table. Most states provide planning grants,
infrastructure construction reimbursements and the related items, for the
most part, on a reimbursement basis. |
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Local Governments.
The local government's contribution may be in the form of bond
financing. As with the other programs, the bond financing is not
likely to provide you with gap financing for the pre-construction period due
diligence costs, but it can be used as a modified take-out to retire
pre-construction phase advances. This means you tie the
pre-construction cost reimbursement/retirement to the bond float and you are
effectively creating a "Bond Anticipation Note" (a
"BAN"). |
Continued.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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