Project Phoenix

Confidential
Information
Memorandum
Private & Confidential

Aurora Polaris Bank

Project Phoenix Summary

Project Phoenix is a 25MWdc, 20MWac , solar

project located in Fignistien. A country that is located
in the southwest of the United States of America,
approximately 497 KM west of Los Angeles.

Fignistien is a wealthy island, that has

aspirations for 100% renewables by 2030, and has
been aggressively pursuing this goal as the electric utility
(owner of the transmission lines as well) Fignistien Power
(“FP”) has been procuring renewable energy through
multiple RFPs over the last 10 years.

Fignistien uses USD as its functional currency.

Project Phoenix received a PPA from FP in 2016.

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Project technical summary

01 Project life: 30-years

02 The project can sell into the merchant market which is

estimated to be between $25/MWh and $40/MWh,
once the PPA expires.

03 The project will be using SunPower A series 400 W panels.

SunPower offers a 25-year warranty on the panels.

• Expected panel degradation is 0.5%

04 Once acquired, it is anticipated that construction can

be completed by December 31, 2019. COD is
expected to be January 1, 2020.

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Project Phoenix Summary (cont’d)

We Develop Hard Inc. the original developer has

defaulted on a term in the PPA, which indicated that
COD would occur no later than 3 years from the
effective date of the PPA, which was April 30, 2016.

The following information can

be found in the data room:

Executed EPC contract

Phase I ESA
for $0.99/MWdc

Independent Engineering
Interconnection
submission and work by FP; report prepared by
Archimedes Inc.

Financing term sheet

provided Fignistien Bank.

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Power Production

Profitability Production

P50 50,370 MWh

50,370 MWh = P50
P75 49,110 MWh
49,110.8 = P75

P90 46,960 MWh

46,960
P99 40,073 MWh
44,073.8

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PPA Summary

Title Description

Offtaker Fignistien Power

PPA Term 20 years

Project Size 25.0 MWdc / 20.0MWac

PPA Price $72.50 / MWh

Liquidated damages $-

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Construction Cost Summary

Description Cost $/Wdc $/Wac

EPC contract $24,675,000 $0.99 $1.23
Land $- $- $-
Other costs $780,000 $0.03 $0.04
Interconnection costs $1,350,000 $0.05 $0.07
Contingency $1,500,000 $0.04 $0.08
Transaction costs $450,000 $0.02 $0.02
Debt arrangement costs $200,000 $0.01 $0.01
Debt service reserve
[TBD] [TBD] [TBD]
account
Total $28,955,000 $1.14 $1.45

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Financing Summary

Title Description
Term of financing 19 years
Maximum loan to value 85%
DSRA 6-months of principal and interest
Base rate (3-month LIBOR) 240 bps
Spread 175 bps
Swap rate 50 bps
All-in rate 465 bps
Covenants:
DSCR P50 1.35x
DSCR P99 1.00x

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Tax rates

Tax class Depreciation Rate Percentage of Capex

Class A 5.0% 0.2%
Class B 20.0% 0.0%
Class C 5.0% 3.2%
Class D 10.0% 0.6%
Class E 25.0% 92.8%

• Fignistien’s depreciation rates are the rate per year charged against each class.
• PriceStonerhouseLoopers LLP performed an analysis of the construction of Project Phoenix, and concluded that the total
construcution cost could be separated out in each of the tax classes per the percentages in the above table.
• Fignistien has a 25.0% tax rate, and cash can be repatriated to your home country tax free.

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Operating expenses

Title Cost
Operations and maintenance $276,000
G&A $75,000
Insurance $103,000
Property tax $155,000
Lease years 1-20 $115,000
Lease years 21-30 $165,000
Other $28,000
Inverter reserve $30,000
Contingency 5%

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