MSF Completes Capital Raising Advisory for Gradient Resources
April 28th, 2011 - Montgomery Street Financial Services, LLC, the San Francisco based specialty investment bank and structured finance advisory company, completed their sixth capital raising engagement for Nevada based Geothermal Developer, Gradient Resources (formerly Vulcan Power Company). The senior secured loan facility of $13 million arranged by MSF was funded by GB Merchant Partners, LLC, the debt and equity affiliate of Gordon Brothers Group.
Montgomery Street Financial Services, Inc. (MSF), a leading San Francisco based specialty investment bank active in alternative energy financing, completed its sixth capital raising engagement on behalf of Gradient Resources (formerly Vulcan Power Company), raising $13 million in a senior secured loan from GB Merchant Partners, LLC. Including this loan, MSF has raised over $225m of debt and equity for Gradient Resources since 2007.
For GB Merchant Partners, this $13 million loan backed by Gradient’s geothermal drilling and cementing equipment represents its first lending relationship in the geothermal industry.
"Few organizations have such deep knowledge, large development potential or dynamic management team as Gradient has within the geothermal industry," commented Gary Prager, Managing Director, GB Merchant Partners. "We are grateful for having the opportunity to assist them financially and we look forward to following Gradient's continued success."
Rick Rodgers, Co-Founder and Managing Director of MSF, commented, “Geothermal energy is economic even without subsidies and Gradient Resources is a company of unparalleled potential in the geothermal space. This has been instrumental in our efforts to broaden Gradient’s financial resources.”
About Gradient Resources
Gradient Resources is headquartered in Reno, Nevada with a regional office, drilling operations center and well-cementing plant near its Patua, Salt Wells and Fallon projects. Gradient was initially incorporated as a Colorado corporation in 1991. Gradient's core business is the development, design, construction and operation of clean, renewable electric power generation projects and the sale of baseload renewable geothermal power to utilities located in the western United States. On a secondary level, through its subsidiaries, Gradient is also engaged in the business of drilling geothermal production wells, supplying specialized cement services for geothermal drilling activities and providing geothermal software services.
About GB Merchant Partners
GB Merchant Partners, the debt and equity affiliate of Gordon Brothers Group with over $500 million of capital under management, focuses on private equity, structured debt and secondary debt investments. Debt investments are made by funds which invest in structured loans in the form of junior secured, "Tranche B" or enterprise value loans, ranging from $5 to $50 million, to middle-market companies in the distribution, wholesale, industrial, retail, consumer products and real estate sectors. The equity fund takes majority and minority equity positions in middle-market retail and consumer products companies.
About Montgomery Street Financial
Montgomery Street Financial (MSF) is an independent boutique investment bank that specializes in capital raising, financial advisory and restructurings for asset-centric industries such as energy, transportation and asset finance businesses. MSF focuses its efforts on: Energy and Alternate Energy, Portfolio Advisory, Highly Structured Asset Backed Financings, and Project Finance. With the Managing Directors each having over 25 years of experience in structured finance, we have become specialists in extracting value from existing portfolio assets and implementing cross border solutions in multiple jurisdictions. MSF offers prospective clients direct contact with principals that apply creativity and tenacity to identify and achieve the best structure for each client's unique circumstances. We provide financial engineering solutions, not just products.