CASE STUDY
The Client:
A global, publicly traded energy infrastructure company focused on providing modernized, cleaner, and more efficient energy solutions through natural gas and renewables, the firm operates at the forefront of the global energy transition. Targeting emerging markets with high demand for infrastructure development and committed to replacing heavier-emission fuels with lower-carbon alternatives, the company provides comprehensive end-to-end services from infrastructure installation to natural gas delivery. Following the devastating 2017 hurricanes in Puerto Rico, the company recognized a strategic opportunity to support the island’s energy system rebuilding and modernization through LNG infrastructure investment, entering into a substantial gas supply contract to power the island and enable other plants to convert to lower-cost natural gas generation—a project with both commercial opportunity and significant social impact.
The Challenge:
The company faced an extraordinarily complex refinancing challenge for nine power generation turbines remaining after eleven generators had been sold to the island power authority. The transaction required a flexible capital solution with higher advance rates than traditional equipment financing typically provides, an aggressive 30-day timeline that would test even the most sophisticated lenders, prepayment capabilities to accommodate potential future sales to local power authorities without penalty, and the ability to execute in US territory with all the unique legal and regulatory complexities that Puerto Rico presents. Most traditional lenders would struggle with the combination of factors—the compressed timeline, the need for $148.5 million in capital, the requirement for prepayment flexibility that introduces refinancing risk, the territorial jurisdiction complications, and the specialized nature of power generation assets serving a rebuilding market with uncertain long-term dynamics. The company had previously worked with a major bank on a 2023 financing, establishing expectations for speed, flexibility, and execution capability that any new lender would need to match or exceed to win the business and support the critical energy infrastructure serving Puerto Rico’s recovery.
Solution:
First National Capital recognized that this transaction demanded more than capital—it required deep energy sector expertise, creative structuring, and operational execution speed that few lenders could deliver. After learning about the client’s 2023 financing experience with a major bank, FNC’s team quickly understood the key requirements and client expectations, positioning itself to address future opportunities swiftly and effectively. When the refinancing need emerged, First National approved and funded $148.5 million in financing in less than 30 days for the nine generators located in Puerto Rico—a timeline that demonstrated extraordinary execution capability. FNC’s energy experts assembled a unified team of capital providers, legal specialists, and asset experts committed to overcoming obstacles and finding solutions rather than citing reasons to decline or delay. The financing structure featured unmatched contract flexibility including prepayment provisions that allowed the turbines to be sold to local power authorities without penalty, addressing the client’s need for strategic optionality as Puerto Rico’s energy landscape continued to evolve. First National delivered this complex transaction because of significant capital resources that enabled a $148.5 million commitment, deep energy infrastructure expertise that allowed rapid underwriting of specialized power generation assets, and relentless advocacy for client needs through a transaction that would have stalled at traditional lenders concerned about timeline pressure, territorial complications, or prepayment risk. This partnership enabled the company to maintain its critical role in Puerto Rico’s energy modernization while preserving the financial flexibility necessary for future strategic decisions.
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