GREY:PGDIF - Post by User
Comment by
ekimon May 25, 2018 8:55am
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Post# 28079786
RE:RE:RE:RE:What if...
RE:RE:RE:RE:What if...50% ownership in trade for that entity paying for PGD's share of the construction cost that will be paid back through operating cashf low plus paying for costs to get the construction level.
Not a bad deal on both ends...but you just need someone on the other end with access to internal capital or access to cheap debt on the markets to make it that much more tantilizing. Someone who already is going to debt and getting 8% or greater...makes no sense to get involved in a deal like the above. Someone with a lot of cash and finding good opportunities to spend it or who can go to market and raise debt at 4% easily....perfect.
Getting access to existing tax credits involves a full take out.
Doing a 50/50 partnership deal means the tax credits that PGD has goes twice as far PGD and its shareholders. Those tax creidts are at the corporate level at PGD and are not applicable to a partner.
LONG...PGD
EKIM