Financial Transaction & Financial Product Support

 

Working with Investors and Lenders

 

LAI understands the needs of the investment community in power and fuel–related transactions, including contracts, assets, mergers, acquisitions and divestitures. We do more than prepare detailed revenue and expense projections – we provide valuable insight into the market dynamics that affect commodity prices, trade positions, and asset values. LAI has conducted extensive due diligence on conventional and renewable generation.  We have performed the same service on project financed HVDC transmission projects.  We have been on both the buy and the sell side of renewable, fossil, and nuclear generation asset transactions. Our consultants provide clients with valuations of storage and pipeline entitlements and merchant transmission lines.  We provide market insights that help clients gauge the potential for earnings enhancement or dilution associated with mergers or acquisitions.

 

LAI assists clients with financial swaps and derivative products, including value-at-risk (VaR) calculations, liquidity considerations, and credit / collateral requirements. Our work incorporates FERC directives under Order 741 to shorten settlement periods, establish minimum credit requirements, and generally protect the financial integrity of clearinghouse functions. We consider cross-default possibilities in dealings with affiliated entities along with changes in credit ratings over time.

 

LAI’s integrated suite of modeling tools allows investors to ask “what if” questions and to test uncertain inputs to derive expected and risk-adjusted financial outlooks and valuations. We identify and evaluate the underlying financial implications associated with power contracts, fuel arrangements, and emission allowance contracts. Our forecasts of electricity, fuel, and emission allowance prices, coupled with our outlook on anticipated regulatory developments, provide clients with a clear view of the market conditions that determine asset values and financial performance over the appropriate time horizon.

 

LAI’s support services for investors and lenders include:

  • Commodity price forecasts
  • Projections of power plant and portfolio revenues, operating expenses, and EBITDA
  • Enterprise and generation resource valuations under alternative operating and regulatory scenarios, accounting for real option values derived from stochastic simulations
  • Unsecured credit determinations based on US and international financial reports
  • Due diligence evaluations of physical and financial assets
  • Marked-to-market valuations of contracts and trading positions
  • Assessments of the impacts of fuel costs, generation technology improvements and pollution control strategies on financial and operating performance

 

 

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100 Summer Street, Suite 3200   Boston, MA 02110    (617) 531-2818   contact@levitan.com
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