2. Integrated Approach
SPB INFRASTRUCTURE
Assembled group of strategic partners to
acquire, manage & finance
central utility plants &
energy efficiency retrofits
SYNERMETRIX
VEOLIA ENERGY Provider of
energy efficiency &
Owns largest
portfolio of Property optimization services,
green building
central heating &
cooling systems
Owner certification &
renewable &
in US
alternative
energy solutions
QUALITY MECHANICAL
Largest design-build, fabrication &
installation mechanical contractors in Nevada
3. Integrated Solution
Liquidity Through Lease Back Reduced Energy Costs Reduced Operating Costs
Long-Term Capital Reduced Carbon Emissions Enhanced Employee Career Path
Market Based Terms Extended Equipment Life Cycle Improved Systems Reliability
Improved Financial Metrics Improved Building Valuation Focus on Core Business
4. SPB Infrastructure
• SPB Infrastructure, LLC is a controlled entity of
SPB Capital Partners that provides a “turnkey” solution
to acquire, improve and manage infrastructure assets
• SPB Infrastructure has assembled a group of strategic
partners that include:
– Synermetrix, LLC
– Quality Mechanical Contractors, LLC
– Veolia Energy
– Houlihan Lokey
• SPB Infrastructure is one of several entities in
the SPB Capital Partners family of investments that
incorporates regional and institutional capital partners
with strategic operating experts
• SPB Capital Partners is a Las Vegas and Los Angeles based private equity platform
drawing on the successful experience of its team, strong relationships and disciplined
investment approach
5. Synermetrix
Relationship-focused professional services firm that provides
commercial property owners, government agencies and other large
organizations world-wide with a comprehensive suite of cost-effective
turn-key energy efficiency, renewable energy and green building
solutions from concept to completion inclusive of analysis, feasibility,
incentives, financing, design, engineering, construction, validation and
certification
Synermetrix’s major services include:
– Energy Efficiency and Optimization Services
– Preconstruction Services for Sustainable Buildings
– MEP Project Management (Mechanical / Electrical / Plumbing)
– Green Building Certification
– Renewable and Alternative Energy Solutions
– Carbon Management and Reduction Strategies
6. Quality Mechanical
The largest mechanical contractor in Nevada
Founded in 1971, Quality Mechanical enjoys continued success with
a core group of employee-owners, some who have been with the
company since its inception
Quality Mechanical has worked on some of the largest projects in
North America in the most aggressive construction schedules. As a
result, Quality Mechanical has become one of the most sophisticated
and experienced design-build contractors in the United States. We
have the most state-of-the-art fabrication facility available. Quality’s
blend of skills and experience provide a truly unique level of service.
– Design Build
– Sheet Metal Fabrication
– Piping Fabrication
– Quality Installation
7. Veolia Environnement
Veolia Environnement (NYSE:VE) is a leading provider of services related to the design,
construction and management of infrastructure systems for energy, water and wastewater,
environmental and transportation; these combined businesses had nearly
$50 billion in 2009 revenues
Veolia Energy is a leading international provider of custom, sustainable energy and facility
operations and management solutions relating to heating and cooling networks, decentralized
energy production, thermal and multi-technical systems, industrial utilities, renewable energy,
and integrated facilities management
Veolia Energy North America provides sustainable energy and facility operations and
management solutions to more than 1,200 customers across a wide range of industries,
including education and research, government, healthcare, housing, industry, office buildings,
retail, gaming, hotels and leisure, transport and telecommunication
8. Veolia Energy
Global Presence in 41 Countries
HOUSING INDUSTRIAL
Nearly 5.7 million housing units 4,200 facilities
NETWORKS
EDUCATION & RESEARCH
682 district and local heating
Nearly 11,600 facilities
and cooling networks
SPORTS, CULTURE & LEISURE COMMERCIAL & OFFICES
Nearly 6,600 facilities 90,000 facilities
HEALTHCARE TELECOM
More than 450,000 beds in 5,130 facilities 18,000 facilities
Nearly 112,000 Energy Facilities Managed
9. Our Process – Acquire
Working with its partners, SPB Infrastructure can offer a one-stop solution for infrastructure
improvement, cost-efficient management and sale leaseback transactions
A variety of commercial leasing options can be structured with flexible terms and at reasonable
rates
Operating Leases Capital Leases
• Infrastructure sold off the balance • On balance sheet obligation of
sheet of Property Owner Property Owner
• Potential Tax Advantages • Asset reverts to Property Owner at the
• 5-10 year terms end of the term
• Purchase and Replacement Options • 7-10 year terms
10. Our Process – Acquire
Houlihan Lokey: Advising SPB Infrastructure and Partners
No. 1 M&A Advisor for U.S. Transactions Under $3 Billion in 2009
Raised Approximately $20 Billion of Capital Over the Past Five Years
No. 1 Investment Banking Restructuring Advisor
14 offices globally Ranked Among the Top 10 U.S. M&A Advisors for Ten Straight Years
Over 800 employees
Over 550 investment bankers No. 1 M&A Fairness Opinion Advisor
2009 Investment Banking Currently Retained on Over 175 M&A Transactions
Firm of The Year
(The M&A Advisor) Currently Retained on 23 Financings Totaling Over $3 Billion
Sources: Thomson Financial Securities Data, Mergers & Acquisitions Journal, TheDeal.com’s Bankruptcy Insider
11. Our Process – Improve
Synermetrix and Veolia will perform an initial assessment of each facility to identify opportunities
to reduce energy costs and improve operations through equipment and infrastructure
optimization, upgrades and retrofits
Initial Improvements Future Costs & Residual Benefits
(Financed as part of infrastructure acquisition) • Conformance with state specific
• Energy efficiency improvements financial and tax incentives
• LEED Green Building Operations and • LEED Green Building Operations and
Maintenance Certification Maintenance Recertification (Optional)
• Aggressive payback on future costs
Financial & Tax Incentives Savings & Benefits
(Immediate and ongoing) (Immediate and ongoing)
• State specific financial and tax • Reduced operating and energy costs
incentives • Extended equipment life cycle
• Federal §179D Tax Credit • Reduced carbon emissions
• Federal R&D Tax Credit • Improved building valuation
• Improved systems reliability
12. Our Process – Manage
Program Implementation
Steam
Production
Property Owner/Site Condenser Building
Water Automation
Agreement on Key
Performance Indicators In-Building
(KPIs) Switchgear HVAC
Systems
COMPLETE O&M
PROGRAM for Site
Domestic Hot
Pool Systems
Water
Electricity
Chilled Water Generation/
Standby
Heating Hot
Water
13. Property OwnerBenefits
Concentrate on
Core Business
Activities
Enhanced Employee Competitively Priced
Career Development Long-term Capital
Property
Owner
Improve Key Liquidity through
Financial Metrics Lease Back
Reduced Operating
Cost per Facility
14. Timeline
Data Request Update data request and submit to Property Owner
Diligence Review SPB Infrastructure reviews data received from
Q&A SPB Infrastructure follows-up with management regarding data received
SPB Infrastructure submits to Property Owner a comprehensive proposal to
Proposal include (i) sale leaseback transaction, (ii) improvement of asset(s) and (iii)
infrastructure management
Negotiate Negotiate and accept the proposal
Documents Draft definitive documents
Close Close and fund
Integration & Transition To Be Determined
Implementation &
To Be Determined
Facility Upgrades
Monitor & Manage Key
To Be Determined
Performance Indicators
15. Questions?
For more information contact: Roger Bulloch
SPB Infrastructure, LLC
10091 Park Run Drive, Suite 190
Las Vegas, NV 89145
P: 702.212.1157