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Alaska Industrial Development and Export Authority
Investing in Alaskans
Alaska Broadband Taskforce Presentation| August 2012
AIDEA’s Mission
The mission of the Alaska Industrial Development and Export Authority is to
promote, develop and advance economic growth and diversification in Alaska by
providing various means of financing and investment
Alaska Industrial Development and Export Authority
Key AIDEA Programs
Alaska Industrial Development and Export Authority
AIDEA has an extensive portfolio of programs to finance economic development in Alaska.
The programs that are most relevant for broadband infrastructure expansion are:
1. Conduit Revenue Bond2. Project Development3. Infrastructure Development
Conduit Bond Program
Alaska Industrial Development and Export Authority
Provides financing where AIDEA acts as a conduit for the issuance of taxable and tax-exempt bonds.
Neither the assets nor credit of AIDEA or the State of Alaska are at risk
The creditworthiness of the project and credit enhancements offered by the applicant are essential to the underwriting and placement of bonds.
The benefit that AIDEA offers is that it is a known entity in the market and may expedite the sale of the bonds in a public offering.
AIDEA can also provide the expertise to issue bonds through a private placement
Project & Infrastructure Development Programs
Objective:
To provide financing for Alaskan projects and infrastructure necessary to support Alaskan economic development.
AIDEA can: Own all or a part of a project or
infrastructure Invest in a Corporation or Limited
Liability Corporation (LLC) that owns the project or infrastructure.
Alaska Industrial Development and Export Authority
Project & Infrastructure Development Programs
The project must be endorsed by the local government.
The project and its development must be economically advantageous to the state and to the general public welfare.
The project applicant is financially responsible.
The project must be economically and financially feasible and able to produce revenue adequate to repay the investment, bonds or loans with which it is financed.
Alaska Industrial Development and Export Authority
Project & Infrastructure Development Programs
Flexibility in structuring our financing packages with each deal being unique and requiring its own specific structure.
The final financing package may include several sources of funds and several different financing vehicles including debt, private and public equity, tax credits and incentives, and grants.
Examples of AIDEA project deals include: Cook Inlet Jack Up Rig DeLong Mountain Transport System Skagway Ore Terminal
Alaska Industrial Development and Export Authority
AIDEA Process
PO
TE
NT
IAL
DE
VE
LO
PM
EN
T P
RO
JE
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Phase 1
Project Suitability Assessment
Phase 2
Feasibility Analysis
Phase 3 Deal Structuring&
Due Diligence
Phase 4 Finalization & Closing
Project Evaluation Committee
- Is project consistent with AIDEA Mission and is project viable?
- Authorization to go to Feasibility Analysis
Investment Committee - Review & Authorization to
go to Deal Structuring & Due Diligence
AIDEA Board - Approve Reimbursement Agreement
AIDEA Board - Acceptance of report - Approval of documents substantially in form - Adoption of resolution
delegating authority to complete financing
AIDEA Executive Director
- Final review - Document execution - Closing
NO GO NO GO NO GO NO GO
GO GO
GO
GO
PROJ ECT PROCEEDS TO FINAL DESIGN,
FUNDING, CONSTRUCTION AND OPERATION
AIDEA DEVELOPMENT PROJ ECT ANALYSIS & DECISION MAKING PROCESS
AIDEA Development Projects
Jack-Up Rig Endeavor – Spirit of IndependencePurchased on 11/14/2011LOCATION: Cook Inlet – May 2012
Alaska Industrial Development and Export Authority
Endeavor – Spirit of Independence
Investment in an oil and gas jack-up rig for Cook Inlet exploration in partnership with Buccaneer Energy and Ezion Holdings Limited through a Limited Liability Corporation.
AIDEA investment will be approximately $24 million to be paid back over 5 years with an 8% preferred dividend.
The rig is currently enroute to Alaska scheduled to arrive in late August and begin operations in the Cook Inlet shortly there after.
Alaska Industrial Development and Export Authority
DeLong Mountain Transportation System
Ownership of a concentrate storage facility, shallow water dock and 52 mile haul road connecting the Red Dog Mine to the coast.
AIDEA invested $265 million which is being paid back through user fees over a 50 year period.
AIDEA is exploring an expansion of the port and an extension of the road to accommodate new development in the area.
Alaska Industrial Development and Export Authority
Skagway Ore Terminal
100,000 sq. ft. ore concentrate storage facility and ship loader.
AIDEA recently made approximately $14 million in improvements to the facility. This investment has been paid back through user fees by the current tenant.
SOT supports family wage year-round jobs and the expanding mining sector in the Yukon Territory.
AIDEA is in preliminary planning for a major expansion of the terminal and has legislative authorization to issue up to $65 million in bonds to fund expansion.Alaska Industrial Development and Export Authority
Potential Projects
Alaska Industrial Development and Export Authority
Rare Earth Elements
Internet server farm
Fiber optics line – Western Alaska as well as connecting with Yukon territory
Deepwater Arctic ports
Infrastructure in the broadest sense
Limitations on Financing
Conduit Bonds$400 million issuance cap in a rolling 12 month period
All ProgramsAll financing is dependent on AIDEA’s prevailing debt capacity
Project/Infrastructure Development• Legislative approval required for investments over
$10 million• Local approval for projects over $6 million
Our Mission is to promote, develop and advance economic growth and diversification in Alaska by providing various means of financing and investment
With the vision to be an active partner with Alaskans and a dynamic resource in Statewide economic development
AIDEA
Alaska Industrial Development and Export
Authority
www.aidea.org
813 West Northern Lights Blvd.Anchorage, Alaska 99503
(907) 771-3000(888) 300-8534 (Toll Free in Alaska)
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