United States based Venture

Deals D000008
Description Company 's recycling plant will re-refine used motor oil and produce virgin base-lube oil. Sales for all the plant’s output are guaranteed and the construction and operation of the plant are also guaranteed. The project now requires only the $6.2m already committed plus $300K for the guaranteed supply contract. The last money-in, $1.8m, is primarily required to satisfy the bank and the equity investor that capital reserves are in place if needed : • The investment provides for a 2.5 year payback and an IRR of 40+% for the $1.8m investment • A long-term guaranteed sales contract is in place to buy all the Jordan plant’s output • $1.4M in equity has already been secured • $4.8 in bank financing has already been committed along with management’s guarantees • The remaining $1.8 tranche is mainly to secure the bank financing and $1.2m of it will remain in the bank account. • Political risk insurance is in place guaranteeing 200% of the investment • Pesco Beam, an American firm, has built 14 such plants worldwide and is contracted with a guarantee to build the plant up to full operating capacity • Hudson engineering, an expert in oil recycling has been retained to help the owners manage Pesco Beam and the entire process • Guaranteed contract in place to source "dirty" oil for recycling
Country Of origin United States
Funding Sector Impact Investment
Colloboration Type