Atn International, Inc. · NASDAQ:ATNI
Atn International — Atlantic Tele Network — Merger or Acquisition (December 2014)
13 slides from Atn International's merger presentation, Dec 29, 2014
Slide 1: Forward Looking Statements and Non-GAAP Financial Information
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the future financial performance of the acquired solar business, its growth prospects and its anticipated contributions to ATN. There are a number of important
Slide 2: Acquisition of Producing Solar Power Projects
Acquisition of Producing Solar Power Projects 3 ATN acquired the assets, platform and management team of Green Lake Capital through a new subsidiary, Ahana Renewables (“Ahana”), representing a total transaction size of approximately $103 million, including assumed indebtedness Ahana owns and operate
Slide 3: Strategic Rationale
Strategic Rationale 4 Opportunity to enter high growth distributed solar power market at reasonable valuation Attractive risk adjusted returns Many parallels to ATN’s domestic wholesale wireless and fiber businesses Fragmented, fast moving market with potential advantages for well-funded platform Po
Slide 4: Portfolio Overview
5 Portfolio Overview Credit Quality by MW Most of the revenue of the Portfolio is contracted through long-term PPAs and Solar Renewable Energy Credits (“SRECs”) The Portfolio sells power to a variety of high-quality rated and unrated “off-takers” including schools, municipalities and corporations Of
Slide 5: Ahana Renewables: Representative Projects
6 Ahana Renewables: Representative Projects Projects are built on large roof tops, parking lots and landfills, optimal sites for solar installations All systems in the portfolio have at least one year of operating history Plymouth Public Schools, Massachusetts Santa Clara County, California
Slide 6: Platform Overview
Platform Overview 7 Green Lake Capital was founded by Jason Tai and Marvin Tien in 2009 Alongside Mr. Tai and Mr. Tien, the company’s management includes individuals with asset management, legal and project finance experience Management team has a strong track record of building the current portfoli
Slide 7: Transaction Terms and Financial Reporting
8 Transaction Terms and Financial Reporting Total Transaction Value: approximately $103 million (excluding ATN transaction fees) Closed using approximately $64 million of cash and assumption of $39 million of debt Debt is floating rate, currently at average of about 5.25% to 5.5% with weighted avera
Slide 8: Industry Fundamentals
Industry Fundamentals 1. Solar power generation is a predictable cash flow business High capital expenditures: low ongoing operating expenses Contracted cash flows Very low churn Very predictable and consistent power production Proven technology 2. The potential market size for solar is large Capita
Slide 9: Recent Years Have Seen A Significant Drop in Installed Costs
Recent Years Have Seen A Significant Drop in Installed Costs U.S. PV INSTALLATIONS AND AVERAGE SYSTEM PRICE, 2002-2013 Source: Greentech Media. 10 22 45 58 79 105 160 298 435 852 1,919 3,369 4,751 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 0 500 1,000 1,500 2,000 2,500 3,000
Slide 10: The Solar Business Creates Long Term Stable Revenue
The Solar Business Creates Long Term Stable Revenue Customer Benefits Solar Owner Benefits Immediate 10-20% reduction in electricity bill Predictable long-term energy cost Positive from sustainability perspective Highly predictable revenue Solar resource is well known Proven technology Low churn Sol
Slide 11: Solar Industry Trends & Forecasts
Solar Industry Trends & Forecasts 12 The U.S. commercial solar market is expected to reach nearly 35% of the total U.S. solar market by 2016 Expected to grow at a CAGR of 48.5%, from 345 MW in 2010 to 3,697 MW in 2016 Sources: Historical figures from Bloomberg. Projected figures calculated as consen
Slide 12: Key Takeaways
13 Key Takeaways Lower risk, reasonable return way to enter the solar market and position for future opportunities Favorable entry price for the quality & size of the portfolio Ahana management has close relationships with leading service providers for all aspects of solar project management Madera
Slide 13: Q&A
14 Q&A
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