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Post by supernumerary on Sept 11, 2018 9:00:41 GMT
Tuesday 11th September 2018 - Loan Launch Details:•Borrower Sector: Energy •Amount: up to £1,500,000 •Term: 60 months (24 months min term) •Rate: 13% - Amortising •Security: Chattel Mortgage over Capital Equipment, Company Debenture, Cross Corporate Guarantees, Personal Guarantee from Principal •Instant Returns: Enabled •Loan Launch: 10am - 11th September 2018 •Loan Live: 2pm - 11th September 2018 •Initial Bid Limit: £15,000 •Bid Limits Removed: 10am - 12th September 2018 PLEASE let observations, on this particular loan, commence...
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boundah
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Post by boundah on Sept 11, 2018 9:16:02 GMT
LTV looking a bit hefty to me.
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Post by supernumerary on Sept 11, 2018 9:19:09 GMT
INITIAL observation:
FWIW, IMHO the security looks VERY good.
Chattel Mortgage over the 3MW Battery Unit, Company debenture over the borrower, Corporate Guarantees over the Parent and associated Company and a Personal Guarantee from the ultimate shareholder (net worth estimated at £14.5 million). [Page 4 - Borrowing Proposal]
The Borrowing Proposal on page 6 outlines in a coherent way how this Battery Storage Site will be beneficial UK's electricity system, within the objectives set out by the UK Government.
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Post by supernumerary on Sept 11, 2018 9:21:22 GMT
LTV looking a bit hefty to me. That was what I noticed, BUT taken against the ADDITIONAL guarantees negotiated by Ablrate and WITH an amortising loan, the LTV will come down accordingly.
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registerme
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Post by registerme on Sept 11, 2018 9:33:04 GMT
How much debt is outstanding across the entire group and all subsidiaries? What's the DSC across the entire group? What's the entire group's asset base? How much is the PG worth when stacked up against all the debt in play?
Other than that I quite like it.
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withnell
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Post by withnell on Sept 11, 2018 9:54:25 GMT
I'd like to understand the P&L a bit more - while I get that there is a price differential between peak and trough demand periods, it looks like c. 445k income vs 15k cost, which does seem rather a big difference
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gustapher
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Post by gustapher on Sept 11, 2018 10:30:58 GMT
Really hard to assess the risk here... The only thing bugging me is the depreciation of the asset given the sharp reduction in lithium ion costs projected over next few years. My head hurts thinking about all the variables to consider. My gut says to go in but I'm not entirely sure why
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SteveT
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Post by SteveT on Sept 11, 2018 11:03:54 GMT
Agreed. So many different dynamics, assumptions and potential uncertainties that the decision boils down to credibility and track record, of the platform and the borrower. Both are good to date, IMO, so I shall be in for a decent bite. I like the concept (which the energy grid desperately needs as the proportion of intermittent wind & solar generation rises) and already have a small equity holding in a battery storage investment trust.
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Post by GSV3MIaC on Sept 11, 2018 11:09:41 GMT
Agreed. So many different dynamics, assumptions and potential uncertainties that the decision boils down to credibility and track record, of the platform and the borrower. Both are good to date, IMO, so I shall be in for a decent bite. I like the concept (which the energy grid desperately needs as the proportion of intermittent wind & solar generation rises) and already have a small equity holding in a battery storage investment trust.
Is that a UK IT (I have failed to find it so far)?
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SteveT
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Post by SteveT on Sept 11, 2018 11:19:30 GMT
Agreed. So many different dynamics, assumptions and potential uncertainties that the decision boils down to credibility and track record, of the platform and the borrower. Both are good to date, IMO, so I shall be in for a decent bite. I like the concept (which the energy grid desperately needs as the proportion of intermittent wind & solar generation rises) and already have a small equity holding in a battery storage investment trust.
Is that a UK IT (I have failed to find it so far)?
www.gsenergystoragefund.com/content/about/fund.aspx
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snowmobile
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Post by snowmobile on Sept 11, 2018 12:36:15 GMT
The borrower company has a sole active director who resigned as a director of the parent company in June 2018. I find it somewhat strange that he is not mentioned on the 'meet the management' page of the proposal.
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boundah
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Post by boundah on Sept 11, 2018 12:36:37 GMT
The borrowing proposal mentions the surges in power demand in the morning and evening. What about the massive spike every time an ABL loan goes live?
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Post by supernumerary on Sept 11, 2018 13:01:19 GMT
ONE MINUTE: £244,184.00 gone!
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snowmobile
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Post by snowmobile on Sept 11, 2018 13:02:13 GMT
The 87% LTV is based upon the cost price of the asset. We aren't told what the second hand value of the asset could be, although warranties and guarantees are provided. This article does not sound optimistic, as it suggests that "in three or four years, many assets will be in the bin".
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Post by supernumerary on Sept 11, 2018 13:02:24 GMT
TWO MINUTES: £370,676.00 gone!!
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