Development capital for emerging market infrastructure projects is scarce in the extreme. Hampden Kent Group, L.L.C. believes it can accomplish capital infusions in selected markets profitably without incurring undue political and currency risk. The HKG management team has the necessary expertise in capital markets and project development to implement all phases of HKG’s business plan and project exit strategy.
HKG seeks to serve client project finance needs in an expeditious manner. Please note that we treat all client proposals as confidential and request that you give confidential treatment or our proposal and work product. This statement summarizes our service model for the construction, operation, and product marketing for a typical project of $100 million(the Project).
Our capital markets research in this period of transition and instability in the commercial banking and public corporate equities markets shows what most businesses already know: that “conventional” sources of capital are not available for new or restructured ventures. This fact leads us to the conclusion that rated, insured, listed bonds are the most efficient and cost effective method of forming capital for new projects. Accordingly, we have devised a complete capital model for obtaining project debt funding in the capital markets on a basis that offers the key advantages of a public offering – maximum liquidity and thus a broad potential investor base – without the expense and time allocations associated with a registered public offering in the US. The model entails the private placement of insured, bonds to institutional investors.
HKG offers three phases of service for this undertaking: [1] HKG Capital Formation Overview and initial consultations; [2] Comprehensive Project Due Diligence and Preparation of Project Information Memorandum; [3] Proactive undertaking of comprehensive final due diligence; insurance, institutional subscriber presentations.
Capital Formation Client Review
At this initial stage, HKG will undertake the confidential HKG Capital Formation Client review, which will encompass
the following points and criteria:
I. Capital Model
II. Due Diligence Criteria
III. Credit and Political Risk Evaluation
IV. Completion Insurance Criteria
VI. Euroclear or DTC Listing Criteria
VII. Institutional Investor Criteria: SEC Rule 144A
HKG will conduct initial due diligence on the project including an evaluation of the proposed business plan for the
Project, pro forma projections, capital structure, and market analysis. HKG will also be available for telephone and
consultation with sponsors, partners, joint venturers, equity investors, and so on. During this initial phase, we review each step of the seven criteria listed above with a view defining any elements of project business plan, in order to meet capitalization standards, prior to going forward.
Comprehensive Project Due Diligence
This phase is entered at client election, as we complete the initial stage. At this point, comprehensive project due diligence is undertaken on the basis of information supplied by the client. The issues addressed would include the following:
I. Project Introduction
II. Project Concept and Business Rationale
III. Project Sponsors
IV. Project Development Strategy
V. Project Description and Cost
VI. Financial Plan
VII. Shareholding
VIII. Economic and Financial Analysis
IX. Technical Aspects
X. Implementation and Marketing Arrangements
XI. Environmental and Social Considerations
XII. Risk Analysis and Risk Mitigation Measures
XIII. Terms of Bond Offering
