1000161 - FPW Energy Group Project Finance III (ABL)

D*********** Organics Ltd was only incorporated earlier this month with £1 in share capital so probably has zero day one value.  I personally place little financial value on guarantees and debentures as in practice I've found little value flows back from these on default.  The real value they provide is the comfort that the ultimate controllers of the borrower will find it difficult to walk away from the liability by moving assets around or just giving up on the subsidiary borrower - i.e. their interests are aligned and they are going to feel as much, if not more, pain on any event of default.

It's difficult to place a real value on the other corporate and personal guarantees as these entities/person is underwriting a lot of another debt across the corporate group and who knows what other investments.

On this occasion, I find myself very reliant on the track record of AF and the significant investor interest in green energy projects generally in assessing whether and/or how much to bid.

I agree. Past performance of an investment must not be taken as a guarantee of future performance, but when it comes to people a track record tells you much about competence, reliability and integrity. Ablrate would be a much diminished platform without AF and all his works. So far, despite my occasional doubts about total group borrowing, this has been a mutually beneficial three-way relationship, and that counts for more than a debenture, imo.

I notice underwriters are suitably lined up (I would suggest they will not be needed) ablrate is normally fairly 'upfront' when asked a direct question and curiosity (and logic) suggests the underwriters are on a 'retainer' to supply this service I wonder if this may be confirmed? the amount of said envisaged retainer would be nice to know as well.

I can't help but feel this 'admittedly perceived funding' could be better employed encouraging mere mortals to commit earlier.

Already 20% gone, so there can't be too many concerns

I fear ablrate may lack several qualifications to become Pope, but would like to see him try on the frock and other paraphernalia. (in public, I have no leanings towards a  private viewing of that nature)

I have come to the conclusion that the assets will always be tenuous, and almost that it is not the key anyway. We get the rates we get because we are taking a risk in that area and actually investing in the potential of the loans to become worth the amount lent. In that area the platform has a good record (but not perfect)

The previous tranches have invariably traded at a fair premium, so it was fairly obvious that it would fill reasonably quickly, it's a well established event. (Maybe the direct line to God was busy, when the underwriters nonsense was decided on)

What I would like to see more of on this type of loan is performance updates - maybe every three months - showing how the potential is developing maybe in a video update delivered from a pulpit?

Badly Drawn Stickman has the village got a church.


Looking forward to ablrate new Avatar, which im sure blender could already be rendering his first impression.