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May 2016 - Bostonia provides $64 million to Honeywell for two ESPCs

Bostonia recently closed on the financing for two Energy Savings Performance Contracts (“ESPCs”) for Honeywell Building Solutions (“Honeywell”) totaling $64 million. Both financings were structured as a securitization of the cash flow from energy savings backed by the government payments due under the ESPC and guaranteed by Honeywell International Inc. The Trust Certificates were sold in the private placement market to institutional investors.

The first transaction totaling $33 million is funding an ESPC for General Services Administration (“GSA”) facilities in Los Angeles, California under the GSA Deep Retrofit program. Under the ESPC, Honeywell is installing various Energy Conservation Measures (“ECMs”) at multiple courthouses and federal buildings in the Los Angeles region. The ECMs consist primarily of: chiller replacement and optimization, lighting and water efficiency, and improvements to HVAC systems and building envelopes. The project will create energy first year savings of $2.0M, overall energy savings in excess of 40%, and the project payback in 18 years. Project completion is expected in September 2017.

The second financing totaling $31 million is funding an ESPC for the Army Corps of Engineers at the Tobyhanna Army Depot in Pennsylvania. Under the ESPC, Honeywell is installing various ECMs at the Tobyhanna Army Depot, including: elimination of stream heating system, chiller system optimization, improvements to utility monitoring and controls, improvements to building envelope, plumbing fixture upgrades, and modernization of the blast booths. The project will create first year savings of over $3 million, overall energy savings of 20%, and project payback in 10 years. Project completion is expected in August 2018.

Relevant Case Study
Dulles Discovery I, II, & III, Herndon, Virginia

Dulles Discovery I, II, & III, Herndon, Virginia

Over 1.25 million SF secure office campus in Herndon, VA. Construction to permanent financing, confidential financing amount.

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