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that works for me!

On Mon, Nov 26, 2012 at 5:02 PM, Eric Schwerin <eschwerin@rosemontseneca.com
> wrote:

> Sounds interesting to me too and Happy Birthday, John!
>
> Later in the afternoon tomorrow would be better for me. Maybe 4/4:30pm
> EST?
>
> Eric D. Schwerin
> eschwerin@rosemontseneca.com
>
> Sent from my iPhone
>
> On Nov 26, 2012, at 8:00 PM, Devon Archer <darcher@rosemontseneca.com>
> wrote:
>
> > John,
> > This sounds like a very interesting opportunity. Looking forward to
> hearing more.
> >
> > Happy Birthday as well!
> >
> > Let's get one of these done before you get really old!
> >
> > I am available tomorrow other than 12:30 - 1:30pm EST.
> >
> > Best,
> > Devon
> >
> > On Nov 26, 2012, at 6:57 PM, John DeLoche <jdeloche@rosemontseneca.com>
> wrote:
> >
> >> Gents,
> >>
> >> Just spent a week in Tokyo with Roys and the staff of this power plant
> company Platinum has formed in Japan, ICC Energy. I began introducing his
> team to my network financing, senior management and other contacts there.
> Bottom line is this power plant project appears very attractive, is being
> run by very competent managers and could be a significant revenue generator
> for us should we decide to be involved. Here is the background:
> >>
> >> Platinum bought a like new (one year of usage) 40Megawatt power plant
> from Toshiba. At 40mw, this will be the largest biofuel power plant in
> Japan. Palm oil will be the fuel. There is an energy shortage in Japan due
> to the Fukushima disaster and the subsequent shut down of all Japan's
> nuclear plants. Additionally, Japan consumes more power per capita than any
> country on earth. The Japanese government is providing incentives to power
> providers to develop alternative energy platforms (solar, wind, biofuel,
> etc). Basically, we are taking advantage of a feed-in tariff provided by
> the Japanese government which ensures a 20 year fixed price for power.
> This is a very profitable project as a result. The equity in this single
> plant (large enough to power a small city) could be worth $50 million or
> more. Once this plant is operational there is the opportunity to roll up
> several more and build a very large and profitable new power company.
> >>
> >> Roys and I discussed doing this as an RS vehicle to mitigate potential
> issues with obtaining Japanese debt financing (upon which the success of
> this project depends) given the highly conservative and closed nature of
> Japan. I recommend we do so for the following reasons.
> >>
> >> There is both a near term recap opportunity (in conjunction with the
> debt raise), fee opportunities as well as significant equity upside. Step
> one would be helping obtain $30 million of bridge and project finance
> capital to start the construction of the plant and recap some of Platinum's
> equity contribution. This step would occur immediately after MEDI approval
> is obtained, which could be as soon as mid December. All parties agree this
> would be easier under a RS SPV. As equity holders, my understanding is that
> this would not require us to be licensed (although I am licensed through
> another BD).
> >>
> >> Roys is waiting for thoughts on how we structure the SPV, equity
> splits, fees etc. Platinum owns 100% of the equity and has committed about
> $20 million to the project to the project thus far.
> >>
> >> Assuming we are all on board with moving forward on this, my suggestion
> is we start at 2 and 20 in a 5 year fund structure and see where it goes
> from there.
> >>
> >> Lets do a call to discuss on Tuesday if possible.
> >>
> >> Best,
> >>
> >> John
> >>
> >> Please excuse typos as this message was sent from my handheld device.
> >
>


--
John DeLoche
*Managing Director*
Rosemont Seneca Technology Partners
One Market, Spear Tower, 36th Floor
San Francisco, CA 94105
office: 415 293 8147
mobile: 415 793 7070

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