Project Finance Advisory

Taylor-DeJongh has been advising both private and public entities on the financing of major capital investment projects throughout the world for more than 30 years. The firm has proven experience in structuring complex international energy and infrastructure project financings from the earliest stages of feasibility to capital structuring, and financial negotiations all the way through to financial closing.

TDJ has internationally recognized expertise in:

• Evaluating, developing and structuring energy and infrastructure investments.
• Managing lender groups for complex, multi-source, capital-intensive projects involving commercial banks, ECAs and official agencies.
• Knowing the financing appetite of bank and capital markets, including private placements with institutional investors and investments funds.
• Assessing public and private sources of risk insurance and credit enhancements.

M&A

Taylor-DeJongh acts as a buy-side and sell-side advisor in mergers and acquisitions, predominantly in the energy sector. These services include: strategic acquisition advisory, assistance in negotiating the financing terms, comprehensive due diligence and organizing supplemental capital (debt or third party equity, if required) in support of transactions, and managing the closing.

Taylor-DeJongh differentiates itself by bringing both experienced industry sector specialists and finance expertise that have been refined in the details of project and asset-backed finance. These skills provide substantive know-how for the management of M&A transactions. This expertise allows a faster and better understanding of the client’s needs and facilitates the successful execution of the deal.

Consulting

Taylor-DeJongh provides financial modeling, due diligence and bankability analysis services to project sponsors, developers and government entities. The firm works with these clients, usually in partnership with consulting, engineering and legal firms, on the upfront analysis and planning for the development of major capital projects, mostly in the emerging markets. Another way that TDJ distinguishes itself from other institutions is its willingness to participate in feasibility studies for projects.

The firm also has a practice group that advises U.S. government loan guarantee programs and lenders providing an independent overview and analysis of the project’s financial structure. For example, TDJ has acted as the financial advisor to U.S. Ex-Im Bank for more than 20 years. The firm’s long and deep relationship with U.S. Ex-Im Bank and other official agencies, including the World Bank Group and Inter-American Development Bank, provides clients with a thorough and efficient understanding of how their projects may benefit from such agencies.

TDJ also acts as a financial advisor to the U.S. Department of Transportation, Federal Highway Administration’s TIFIA Credit Assistance program and to the U.S. Department of Energy’s Loan Guarantee program. In addition, the firm can assist project developers and sponsors in applying for U.S. DOT and U.S. DOE credit assistance and loan guarantees. TDJ provides bankability analysis, financial model review and project due diligence services to prepare projects for the application process.

Strategic Advisory

Taylor-DeJongh’s senior team averages more than 25 years in the energy and infrastructure sectors. Their careers have spanned several economic cycles. Their perspectives and fundamental understanding of the industry provide the basis for sound strategic advice that is good “for the long haul.”

TDJ has a 360° view of transaction issues. The firm has advised developers, lenders, governments and contractors on energy and infrastructure investment projects. The firm understands risks from all points of view. This expertise helps identify strategic goals and expedites the negotiating process, whether in an M&A transaction, capital placement or project investment.

As a fully independent advisor, with a history of innovation in financial structuring, TDJ is in a strong position to advise and assist its clients in accomplishing their objectives. With in-depth industry knowledge and indisputable structuring expertise, TDJ provides tailored strategic advice for companies or investors seeking to expand or diversify their positions in the energy sector. The firm’s focus on efficient transactional execution sets it apart from more theoretical approaches to strategic advice.

Sukuk Finance

Sukuk represent undivided shares in the ownership of tangible assets relating to particular projects or special investment activity. A Sukuk investor has a common share in the ownership of the assets linked to the investment, although this does not represent a debt owed to the issuer of the bond. Consequently, Sukuk holders are entitled to a share in the revenues generated by the Sukuk assets—the sale of Sukuk relates to the sale of a proportionate share in the assets. Since the beginning of 2000, Sukuk have become important Islamic financial instruments in raising funds for long-term project financing. Taylor-DeJongh has recently established a Sukuk practice in order to leverage the company’s energy and infrastructure expertise and to develop Sukuk finance solutions.

This alternative source of capital offers many advantages for oil & gas companies, particularly mid-cap O&G companies. Sukuk can reduce the total cost of financing, provide potential long term tenors, provide financing to projects that might have been neglected by traditional investors, and potentially reduce equity requirements on mid-cap companies.

Sukuk finance also offers a substantial source of capital that is highly competitive in pricing and tenor to asset-backed structured finance to fill the investment gap that exists in infrastructure markets.

Taylor-DeJongh and its Principals have executed several landmark deals, including:

• Advisory on the first LNG financing integrating Islamic, traditional commercial bank and export credit agency financing.
• One of the largest aluminum smelters in the world, integrating Islamic Finance as one of 5 separate tranches.
• Financing for operating costs associated with drilling and operating wells for the first U.S. Sukuk backed by oil & gas assets in the Gulf of Mexico and the first Sukuk ever rated by S&P (named as the most innovative Islamic Deal of the Year 2007 by Euromoney).
• The first securitization Sukuk in Saudi Arabia.
• The first Islamic securitization out of the GCC (named the 2nd best emerging markets deal of the year by ISR for 2003).
• The first Revolving Auto Loan ABS in the MENA region.
• The fist ABCP conduit in the MENA region.
• The biggest Lebanese term Auto ABS deal.

In addition, Sheikh Yusuf DeLorenzo, Chairman of the Dow Jones Islamic Market Indices, serves on Taylor-DeJongh’s Advisory Board.