Friedman, Luzzatto & Co. And Duncan-Williams Complete Underwriting For Waste
Energy Project In San Antonio
Project is One of Just a Few Bond Issues in the U.S. to Fund a Landfill
CPS Energy to Buy the Power through a 15-year Power-Purchase Agreement
DALLAS and MEMPHIS, Tenn., Dec. 4, 2013
DALLAS and MEMPHIS, Tenn., Dec. 4, 2013 /PRNewswire/ --Dallas-based Friedman,
Luzzatto & Co.and Memphis, Tenn.-based Duncan-Williams, Inc. announced the
completion of a $9 million taxable revenue bond issue to finance the
construction of a waste-to-energy project in San Antonio, one of just a few
bond issues in the U.S. for a landfill gas-to-electricity project. Friedman,
Luzzatto and Duncan-Williams were co-senior managers on the bond issue.
Friedman, Luzzatto is a broker/dealer and financial advisor specializing in
municipal securities nationwide. Duncan-Williams is a nationally recognized
full-service financial services firm.
The landfill gas-to-electricity power plant, expected to be commercially
operational by the close of 2013, will be constructed at the Nelson Gardens
Landfill, owned by the City of San Antonio. The purpose of the project is to
capture the methane emitted from the decomposing waste in the landfill to
The City of San Antonio authorized the issuance of the taxable revenue bonds
through the Mission Economic Development Corporation (MEDC), a non-profit
corporation which is authorized to issue bonds and lend the proceeds to a
special purpose entity. MEDC does not guarantee the bonds. The proceeds of the
bonds were loaned to Nelson Gardens Energy, LLC, to construct the project.
Nelson Gardens Energy, LLC is a Texas limited liability company formed by New
York-based Greenfield Energy, to own the project. The total size of the
project including debt and equity is approximately $14.8 million.
"There have been very few methane gas power projects financed through the bond
market," said Barry Friedman, president, Friedman, Luzzatto. "However, because
landfill gas projects are a growing sector in the alternative energy sector as
utilities look for viable ways to capture unused sources of renewable energy
and put them to use, I believe you will see more entities turning to the bond
market for financing."
When completed, Nelson Gardens is projected to produce 4 megawatts of
electricity annually. CPS Energy, a utility owned by the City of San Antonio,
has a 15-year power purchase agreement with Nelson Gardens Energy to buy the
power. Nelson Gardens is one of three landfill gas-to-electricity projects
developed by Greenfield.
"This project will add additional electric capacity for the citizens of San
Antonio and turn what was a waste product into an additional source of income
for the city," said Gary Craig, a Nelson Gardens member. "But more
importantly, it will help the city achieve its goal of implementing green
initiatives to reduce its carbon footprint by capturing methane instead of
releasing it to the atmosphere."
Greenfield was selected by the City of San Antonio in January 2010. In July of
2012, Greenfield retained the services of Friedman, Luzzatto's affiliate,
Dallas-based Carlyle Capital Markets, Inc., as a consultant to assist in the
development of the financing for the project. Carlyle specializes in
developing project financing for private developers along with lease-purchase
programs for municipal entities.
A substantial boost to the project was Greenfield's ability to secure a
Section 1603 Grant for the project. The grant is part of a Federal program
that reimburses eligible applicants for 30 percent of the costs of installing
specified renewable energy projects.
"We were successful in getting the bonds sold in light of the challenges
presented by the relatively small size of the deal and the limited number of
previous landfill gas-to-electricity projects financed through the bond
market. Much of the success resulted from the unwavering commitment of the
developer and the comprehensive due diligence process that allowed the
investors to fully comprehend the long-term potential of the project," said
Wayne Breunig, managing director, Duncan-Williams.
TDIndustries (TD) has been engaged to construct the power facilities to be
located at the landfill. TD is one of the country's leading mechanical
construction and facility service companies, with broad-based experience in
constructing energy efficiency projects. Once constructed, the plant will have
facilities that capture the gas, bring it to the plant, and prepare it to be
used as fuel for four engines that will power four generators to make
About Friedman, Luzzatto & Co.
Friedman, Luzzatto & Co. is a woman-owned business that offers underwriting
and financial advisory services for municipal securities for state and local
governmental issuers nationwide. A member of SIPC and FINRA, Friedman,
Luzzatto has built its reputation on the ability to provide professional,
timely, and cost effective service to its governmental clients across the
About Duncan-Williams, Inc.
Duncan-Williams, Inc. is a family and employee owned investment banking firm
headquartered in Memphis, Tennessee. In its 43 years, the firm has grown into
a nationally recognized, full-service financial services provider serving
clients in all 50 states. With a capitalization of approximately $30 million,
Duncan-Williams, Inc. now ranks among the largest privately owned investment
firms in the United States.
SOURCE Duncan-Williams, Inc.
Contact: Vicki Granado, 214.599.8785, Vicki@granadopr.com
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