Laidlaw Energy Group, Inc.(fka LLEG)

[DragonBear]

New owners of a facility don't typically get a loan for equity, unless that equity belongs to someone(s) else

It could be for initial operating cash, but that is a pretty steep amount, IMO. $72.5M is about 1-year's worth of gross income ($1.3B over 20 years = $65M/yr).

You don't seem to want to give up on that dream $70M final payment, do you? Having $72.5M of cash on hand initially does not seem steep at all.

BWCC's scope of work is to engineer, procure and construct the plant and all associated balance of plant support systems, including the turbine/generator and fuel handling equipment. BWCC will self-perform the erection of all B&W-supplied equipment

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http://www.babcock.com/news_and_events/2011/20110913a.html

Customary is to pay for the materials or equipment up front. BWCC isn't going to carry the cost of the equipment manufacture on its books. If one assumes the usual of 50% materials, 50% labor then a large chunk of the $72.5M is in sync with the $186M awarded BWCC. What's left of the cash goes to local contractors to get the facility ready for BWCC in the fall of 2013.

Guesstimated payoff for LLEG: $3.5M or less.