EFTA01387693.pdf

From: Paul Barrett Sent: 4/20/2018 12:12:54 PM To: Vahe Stepanian CC: Stewart Oldfield ; Martin Zeman ( 1 Subject: RE: RIN follow up One more — what default/cumm loss assumptions are they using to get the expected return of 12-15%? Paul Barrett Alpha Group Capital LLC a ALPHA GROUP CAPITAL. From: Vahe Stepanian < Sent: Thursday, A ril 19, 2018 5:53 PM To: Paul Barrett < > Cc: Stewart Oldfield < > Subject: RE: RIN follow up Paul- Apologies for the delayed response — had a bit of a crazy day here. Answers to your questions: Are the loans on completed infrastructure projects or more like construction loans? o The RIN team is focused on investing in loans secured by operational infrastructure projects. RIN II will have concentration limitations that require 85% of the portfolio to be comprised of loans secured by operating assets. For reference, there are 3 loans currently in RIN l's portfolio that are either (i) greenfield construction or (ii) have a large brownfield expansion underway and comprise - 12% of RIN I's portfolio as of today. Although these loans have do have some construction risk, we believe that these risks have been well mitigated as described in the table below. Loan Nature of Construction Construction Risk Mitigants Cheniere Energy (SPLNG,CCTP) Assets includes operational pipeline, 4 • Lump-sum, fixed-price, operational LNG terminals, and 1re- turnkey EPC Contracts for the gasification/storage terminal. 1 construction with Bechtel, a premier additional LNG terminal under engineering, construction and project construction and another under management companies consideration. • The EPC Contracts include liquidated-damage provisions requiring performing within 95% of design specifications and 18-month defect liability provisions and are guaranteed by Bechtel Global (entity that includes Bechtel's oil, gas, chemicals, power & communications businesses) • Project uses proven and leading liquefaction tech CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0090785 CONFIDENTIAL SDNY_GM_00236969 EFTA01387693