Financing Challenges Sample Clauses

Financing Challenges. Seller in need of quick close - Property highly sought after by conventional (cash-on-cash) buyers - LIHPRHA regulatory agreement prohibited MUTM rent increase until August 1, 2017 - HUD approval required for use of residual receipts as a source for future resyndication - Seller desire to derive sale value from residual receipts - HUD, CSCDA, and TCAC regulatory agreements all required modification/subordination - Resyndication transaction not possible until August 2017 thus exposing buyer to interest rate risk and credit price risk - In order to compete with conventional buyers the Buyer had to value the Property assuming a successful resyndication Financing Structure: - Freddie Mac structured a high leverage (85% LTV), low cost (2.57% interest only), quick close Bridge Loan - Freddie Mac also allowed an 18 month forward rate lock on a permanent Tax Exempt Loan (“TEL”) at a rate of 4.42% on a 17 year term and 35 year amortization with the first two (2) years interest only Acquisition Source & Use Sources Freddie Mac Loan $30,600,000 Transfer of Residual Receipts $1,540,000 Transfer of Repl Reserves $1,170,000 Borrower Equity $6,585,000 Total Sources $39,895,000 Uses Purchase Price $36,000,000 Total Transaction Costs and Repairs $1,185,000 Residual Receipts Reserve $1,540,000 Replacement Reserve Deposit $1,170,000 Total Uses $39,895,000 Unique Aspects of Financing: - The Bridge Loan allowed a quick close (60 days) to compete with conventional buyers while the forward rate lock eliminated interest rate and credit price risk for the Buyer who intended to resyndicate in 2017 - Freddie Mac approved a Seller Note in order to transfer sale value of residual receipts for the Buyer to the Seller - Freddie Mac allowed reduction or expansion of the permanent TEL based on final MUTM rents TBD in 2017 - HUD approved use of residual receipts and other HUD reserves as a source for rehabilitation - Freddie Mac approved any shortfall in resyndication sources to be structured as a Seller Note - Freddie Mac approved upward loan earn-out feature to account for HUD rent approval risk
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Financing Challenges. A major challenge to sustaining high levels of renewable energy deployment in India is the lack of sufficient debt financing with suitable terms and conditions, particularly the scarcity of long-term funds for project lending. Due to the relatively high upfront (per megawatt) cost of renewable energy projects, loan tenors of 12 or more years are usually required to make projects financially viable. However, such long-term funds are scarce in the Indian market. This is due to the prevalence of bank-based lending in India and the commercial banksinability to lend long-term funds from their short-term deposits, given the implied asset and liability mismatch generated. This limited capacity is also constrained by banks’ already high exposure to the power sector, such that additional lending for renewable energy is difficult due to their exposure limits imposed by the Reserve Bank of India.4 Furthermore, adoption of Basel III Capital Regulations by Indian banks will likely lead to additional pressure on similar bank based infrastructure lending given stricter capital adequacy requirements on asset liability mismatches.5 Other long-term debt instruments from the capital markets are costly due to the higher-than-actual risk perception of and unfamiliarity with the renewable energy technologies, and the intermittency of many renewable energy sources (such as wind and solar) that increases revenue volatility.

Related to Financing Challenges

  • Priority Lien Status The County’s right to receive FILOT payments hereunder shall have a first priority lien status pursuant to Sections 12-44-90(E) and (F) of the FILOT Act and Chapters 4, 49, 51, 53, and 54 of Title 12 of the Code.

  • - FINANCING THE ACTION I.3.1 The total cost of the action is estimated at EUR […], as shown in the estimated budget in Annex II. The estimated budget shall give a detailed breakdown of the costs that are eligible for Community funding under the terms of Article II.14, of any other costs that the action may entail, and of all receipts, so that receipts and costs balance.

  • Third Party Financing If Product acquisitions are financed through any third party financing, Contractor may be required as a condition of Contract Award to agree to the terms and conditions of a “Consent & Acknowledgment Agreement” in a form acceptable to the Commissioner.

  • Staffing Changes The Director’s prior written approval is required for the Consultant to remove, replace or add to any of its staffing identified in Attachment B of an Approved Service Order.

  • Other transactions The transactions contemplated by the Sale and Servicing Agreement to be consummated on the Closing Date shall be consummated on such date.

  • Pre-financing Pre-financing is intended to provide the beneficiary with a float. Where required by the provisions of Article I.4 on pre-financing, the beneficiary shall furnish a financial guarantee from a bank or an approved financial institution established in one of the Member States of the European Union. The guarantor shall stand as first call guarantor and shall not require the Commission to have recourse against the principal debtor (the beneficiary). The financial guarantee shall remain in force until final payments by the Commission match the proportion of the total grant accounted for by pre-financing. The Commission undertakes to release the guarantee within 30 days following that date.

  • Recording Changes The Contractor shall record all changes and shall annotate a copy of the drawings to reflect the as-built condition as required in Paragraph 1.1.7.3 above.

  • Withdrawal of the Proceeds of the Financing General The Recipient may withdraw the proceeds of the Financing in accordance with the provisions of Article II of the General Conditions, this Section, and such additional instructions as the Association shall specify by notice to the Recipient (including the “World Bank Disbursement Guidelines for Projects” dated May 2006, as revised from time to time by the Association and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the table in paragraph 2 below. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing (“Category”), the allocations of the amounts of the Credit to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Category Amount of the Credit Allocated (expressed in SDR) Percentage of Expenditures to be Financed (inclusive of taxes) Goods, works, consultants’ services, workshops, training, audits, and Incremental Operating Costs Block-Grants 24,800,000 107,000,000 100% 100% TOTAL 131,800,000

  • Multiparty Proceeding All parties necessary to resolve a claim shall be parties to the same dispute resolution proceeding and shall share the costs equally. Appropriate provisions shall be included in all other contracts relating to the Work to provide for the consolidation of such dispute resolution procedures.

  • Financing Cooperation (a) EchoStar shall, and shall cause its Subsidiaries to, use reasonable best efforts to provide such assistance as reasonably requested by DISH in connection with financing arrangements (including assumptions, guarantees, amendments, supplements, modifications, refinancings, replacements, repayments, terminations or prepayments of existing financing arrangements) as DISH may reasonably determine necessary or advisable in connection with the completion of the Merger or the other transactions contemplated by this Agreement. Such assistance shall include, but not be limited to, the following: (a) providing such information and making available such personnel as DISH may reasonably request, including the preparation and furnishing in a timely fashion of all financial statements and other data customary to be included in connection therewith (including all audited financial statements, all unaudited financial statements (which shall have been reviewed by the independent accounting firm for EchoStar as provided in the procedures specified by the Public Company Accounting Oversight Board in AU 722)) and all information regarding EchoStar and its Subsidiaries reasonably required for DISH to prepare pro forma financial statements, financial data, audit reports and other information regarding EchoStar and its Subsidiaries of the type required by and in compliance with Regulation S-X and Regulation S-K promulgated under the Securities Act and related forms; (b) participation in, and assistance with, any marketing activities related to such financing; (c) participation by senior management of EchoStar in, and their assistance with, the preparation of rating agency presentations and meetings with rating agencies; (d) taking such actions as are reasonably requested by DISH or its financing sources to facilitate the satisfaction of all conditions precedent to obtaining such financing; and (e) assisting in any exchange transactions or consents with respect to the EchoStar Indentures. Notwithstanding the foregoing, EchoStar and its Subsidiaries shall not be required pursuant to this Section 4.19 to (1) enter into any letter, certificate, document, agreement or instrument (other than customary authorization and representation letters and notices) that will be effective prior to the Closing (or that will otherwise be effective if the Closing does not occur), (2) take any action to the extent it would unreasonably disrupt the business or operations of EchoStar and the EchoStar Subsidiaries (taken as a whole) or require any of them to take any actions that would reasonably be expected to violate any applicable Legal Requirement, any Contract or their respective Organizational Documents, (3) provide any information to the extent such information would not be required to be provided pursuant to Section 4.8(a), (4) take any actions, or omit to take an action, that would reasonably be expected to result in any personal liability for the directors, officers, employees or stockholders of EchoStar or any of its Subsidiaries, (5) provide any information that cannot be provided without unreasonable burden or expense or (6) take any action, or omit to take an action, that would reasonably be expected to cause any representation, warranty or covenant in this Agreement to be breached by EchoStar or any of its Subsidiaries (unless waived by DISH) or cause any closing condition set forth in Article V to fail to be satisfied. EchoStar hereby consents to DISH’s use of and reliance on any audited or unaudited financial statements relating to EchoStar and the consolidated EchoStar Subsidiaries, including any filings that DISH desires to make with the SEC. In addition, EchoStar will use reasonable best efforts, at DISH’s sole cost and expense, to obtain the consents of any auditor to the inclusion of the financial statements referenced above in appropriate filings with the SEC.

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