Tax Credits

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SEASONS GREETINGS FROM WF

Renewable energy activity continued to flourish in North Carolina in 2015, and while the state tax credit sunsets and safe-harbored projects work their way through the pipeline, all expectations are that renewable energy transactions will continue at a robust pace in 2016. In 2015, the attorneys at WF represented senior secured lenders providing construction, construction-to-permanent, and back leverage financing to renewable energy sponsors in 16 different transactions, that collectively total 47 solar farms, over 230 MW of renewable energy capacity and over ... Read more

NEW MARKETS TAX CREDIT INVESTMENTS CAN BE PLAUSIBLE ALTERNATIVES TO TRADITIONAL SUBORDINATED DEBT

Many companies face challenges arising from balancing the right amount of leverage with access to capital markets and the cost of debt service.  Many senior lenders will cap out their senior debt investments at or around three times leverage.  For companies that require additional debt to finance major corporate transactions, finding the right subordinated lender at the right price can be a challenge.  In some deals we’ve seen recently, middle market sub debt pricing ranges from 10-12% per year with another ... Read more