alaska industrial development and export authority

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


Key AIDEA Programs


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


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 ProgramsObjective: 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.


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.


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


AIDEA Process

POTE

NTI

AL

DEVE

LOPM

ENT

PRO

JECT

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


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.


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.


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


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)

alaska industrial development and export authority

Documents

export authority aidea

alaskan economic development

credit of aidea

aidea investment

project applicant

aidea acts

aidea offers

state of alaska