Dividend provided PACE (Property Assessed Clean Energy) financing to Coil Steel Processing as part of a major building overhaul prior to Coil installing a new processing line. The project was initially a plant lighting retrofit, but the scope was expanded when the general contractor identified HVAC, roofing, and insulation measures that would upgrade the building’s resistance to temperature and moisture and that would improve the comfort of occupants . Dividend’s PACE financing closed during the initial COVID-related economic downturn.
Company: Coil Steel Processing
Financing Closed: June 29, 2020
- Interior & Exterior LED Lighting
- Roof Replacement & Insulation
- Mechanical Air Rotation Unit
- Door Heaters
- Wall & Foundation Insulation
PACE Financing: $1,092,147 (25 years, 5.75%)
Project Completion: December 2020
Further investment unlocked with PACE: PACE did not impact the debt load on Coil Steel, enabling it to leverage $5,500,000 in SBA financing for its new processing line
$8,100,000 in total new Coil Steel
Combined C02 Saved Per Year:
- 172 Metric Tons of CO2 annually is equal to:
– 37 cars per year off the road
– 99 tons of coal not burned
– 20 homes’ energy use
– 224 acres of forest capturing CO2
Jobs Created by PACE: 16
PACE-eligible improvements include: (1) roof replacement; (2) the addition of R13 insulation to the roof, walls, and foundation of the building; (3) upgrading interior and exterior lighting fixtures to LED fixtures; and (4) a new mechanical air rotation unit.
Because PACE is non-recourse to the property owner or its tenants, it did not impede Coil Steel’s ability to secure additional financing. As a result, Coil Steel was able to leverage $5,500,000 in SBA financing to install a stretcher-leveler line. This line will increase Coil’s processing capacity by an estimated 73,000 tons per year and further cement its place in the Midwest steel market.
Coil Steel is a local family-owned and operated steel toll processor. Annually, it processes about 60,000 tons of raw steel coil and further processes each coil into uniform sheets and coils on its two existing lines. End market applications for its products include shipping containers, liquid & gas storage tanks, laser tables, and truck/trailer beds.
Dividend offers residential clean energy financing and commercial PACE, which is a public-private financing mechanism for energy efficiency, renewable energy, water conservation, and resiliency upgrades on privately-owned property. The company has financed over $1.2 billion in clean energy and energy efficiency projects. Dividend’s commercial PACE program launched in 2010 as one of the first PACE programs in the country. It is a PACE Program Administrator in California and a Qualified Capital Provider in 24 states.