Author Topic: JEF - Jefferies Group  (Read 600751 times)

shoeless

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Re: JEF - Jefferies Group
« Reply #380 on: October 31, 2012, 08:37:03 AM »
http://www.kplctv.com/story/19942882/lake-charles-clean-energy-project-would-create-1500-construction-jobs

"Having secured a 25-year operating agreement with the Port of Lake Charles -- the Leucadia Corporation is set to invest $2.5 billion in the nation's first gasification plant."

« Last Edit: October 31, 2012, 08:40:58 AM by shoeless »


racemize

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Re: JEF - Jefferies Group
« Reply #381 on: October 31, 2012, 08:51:25 AM »
http://www.kplctv.com/story/19942882/lake-charles-clean-energy-project-would-create-1500-construction-jobs

"Having secured a 25-year operating agreement with the Port of Lake Charles -- the Leucadia Corporation is set to invest $2.5 billion in the nation's first gasification plant."

from the article:
Quote
LCCE was awarded $1.56 billion of Gulf Opportunity Zone ("GO Zone") and Hurricane Ike taxexempt bonds by the Louisiana State Bond Commission. The issuance of these bonds demonstrates the state of Louisiana's strong financial support for the project. The low-cost GO Zone financing provided by the state was a large incentive to develop the project in Lake Charles.

It also says it will cost 2 billion over the 25 years, so I wonder how much Leucadia had to put up front given those data points.

JRH

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Re: JEF - Jefferies Group
« Reply #382 on: October 31, 2012, 08:54:04 AM »
http://www.kplctv.com/story/19942882/lake-charles-clean-energy-project-would-create-1500-construction-jobs

"Having secured a 25-year operating agreement with the Port of Lake Charles -- the Leucadia Corporation is set to invest $2.5 billion in the nation's first gasification plant."

From the 2010 Annual Report (released spring 2011):

"Each of these projects is extremely capital intensive and highly vulnerable to interest rates, inflation, current and expected long-term natural gas prices, and final receipt of various regulatory, permitting and financing approvals.  Given that each of these projects range in size from $2.3 billion to $2.6 billion, or more, Leucadia may begin to seek partners sometime this year to share the costs."

The article you posted is the first substantive mention with additional information I recall seeing since that time:

"The release states that a final investment decision in the project remains subject to third party financing and board approval by Leucadia National Corporation. As part of its financing efforts, Lake Charles Clean Energy has retained Credit Suisse AG and its affiliates, Citigroup and its affiliates, and Jefferies & Company, Inc. and its affiliates to provide advisory services related to potential placement of project equity.

According to the release, the project represents a capital investment of more than $2.5 billion..."


Sounds like Leucadia is looking for partners?  It'll be interesting to see a number finalized on Leucadia's share of the equity investment...
Twitter: @D3302

Grenville

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Re: JEF - Jefferies Group
« Reply #383 on: October 31, 2012, 09:30:52 AM »
http://www.kplctv.com/story/19942882/lake-charles-clean-energy-project-would-create-1500-construction-jobs

"Having secured a 25-year operating agreement with the Port of Lake Charles -- the Leucadia Corporation is set to invest $2.5 billion in the nation's first gasification plant."

Thanks! Interesting.

Here's a link to the projects website.
http://www.lakecharlescleanenergy.com

shoeless

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Re: JEF - Jefferies Group
« Reply #384 on: October 31, 2012, 11:05:59 AM »
Time to read up on methanol a bit. Came across this
http://www.blogvesting.com/2008/09/27/taking-a-position-in-methanex-meoh/

txlaw

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Re: JEF - Jefferies Group
« Reply #385 on: October 31, 2012, 11:47:44 AM »
LCCE is expected to be one of the world's lowest-cost producers of methanol and hydrogen and a low-cost producer of other products used in the chemical and refining industries. In addition to extraordinary limitations on emissions of Criteria Pollutants, the plant is designed to capture, compress and sell 90 percent of its carbon dioxide ("CO2") production for use in Enhanced Oil Recovery ("EOR") in the US Gulf Coast," a news release from LCCE states.

See, I love this. 

I once looked into ZINC after I saw it in Pabrai's portfolio.  They are also a low-cost producer of products that use waste/byproduct materials as a feedstock.  But the problem I had with ZINC is that it was just a couple of plants, and if those things blew up or something happened to them, it would be game over, and I was never able to get in at a price that I liked to compensate me for that risk.

Now the great thing about owning LUK is that you get a low cost producer like this in a portfolio of assets that generate wealth that will be corporate tax free.  Once again, these guys prove they are the smartest guys in the room -- but for real, not like those Enron d-bags.

Really interested to see how they are going to finance this project.

txlaw

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Re: JEF - Jefferies Group
« Reply #386 on: October 31, 2012, 11:50:17 AM »
http://www.netl.doe.gov/publications/factsheets/project/FE0002314.pdf

Damn government and their subsidies to industry!

Dazel

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Re: JEF - Jefferies Group
« Reply #387 on: October 31, 2012, 12:59:25 PM »


Leucadia guys are brilliant!

You gotta love how smart they are.


motownsf

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Re: JEF - Jefferies Group
« Reply #388 on: October 31, 2012, 02:23:48 PM »
Wonder who would work on it with them? On second thought, a PE fund isn't likely due to duration of the project. Leukadia will need someone more longterm.
« Last Edit: October 31, 2012, 02:39:57 PM by motownsf »

Hawk4value

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Re: JEF - Jefferies Group
« Reply #389 on: October 31, 2012, 04:24:27 PM »
Wonder who would work on it with them? On second thought, a PE fund isn't likely due to duration of the project. Leukadia will need someone more longterm.

How about Warren???