EB 5 OFFERING SUMMARY

Transcription

1 Star of Texas Regional Center Master Limited Partnership I, Ltd. 10 Preferred Limited Partnership Units EB 5 OFFERING SUMMARY OFFERING SUMMARY Star of Texas Regional Center Master Limited Partnership I, Ltd. 1

2 OFFERING SUMMARY & INVESTMENT HIGHLIGHTS The Star of Texas Regional Center is raising $5,000,000 to invest in the Star of Texas Regional Center Master Limited Partnership I composed of ten (10) Preferred Limited Partnership Units in an EB 5 compliant project. The funds will be invested in Bolivar Utility Services, LLC ( BUS ), a private utility company located on the Bolivar Peninsula in Galveston County, Texas. The funds will be used by BUS to expand an existing, profitable wastewater treatment and gathering business ( Project ) by adding an additional wastewater treatment plant and expanding its wastewater gathering system. BUS is a monopoly utility located within 90 minutes of over 6,500,000 people who utilize this drive to resort area serving the 21,000,000 Texans who are potential resort owners / visitors to Bolivar. GENERAL INFORMATION Bolivar Utility Services, LLC ( BUS ) owns and operates a private wastewater gathering and treatment system serving the Bolivar Peninsula of Galveston County, Texas since BUS is the exclusive provider of wastewater gathering and treatment services on Bolivar Peninsula. BUS is an investor owned utility with common equity in excess of $5,000,000. BUS has no third party debt. BUS has a strong management team whose members have more than 30 years of experience. BUS is a subsidiary of Allco, LLC who has constructed and developed hundreds of water treatment facilities in Texas. See BUS has received all necessary government permits required for operating the system. BUS is currently providing services via an existing 100,000 gallon per day treatment plant and related gathering system. EXPANSION PROJECT Expansion Project will increase both processing capacity and geographic coverage. Total Project Cost Over $8,450,000. EB 5 Funding from Star of Texas Regional Center Master Limited Partnership I $5,000,000. Funding provided by existing BUS Owner Over $3,450,000. Project includes: a new 500,000 gallon per day wastewater treatment plant, expansion of collection system, construction of maintenance and support facilities, and acquisition of equipment. Recent 10,000 square foot, $1.8 million beach house construction on Bolivar Peninsula OFFERING SUMMARY Star of Texas Regional Center Master Limited Partnership I, Ltd. 2

3 FINANCIAL SUMARY Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Cash $54,719 $262,217 $564,720 $968,149 $245,516 Sinking Fund $0 $352,500 $783,750 $1,316,250 $0 Total Equity $7,434,584 $12,027,300 $14,138,787 $14,514,572 $11,933,408 Common Equity $6,934,584 $7,090,552 $9,449,470 $10,125,255 $11,933,408 Equity Percentage to Total Equity 93% 59% 67% 70% 100% Preferred Equity $500,000 $5,000,000 $5,000,000 $5,000,000 $0 Equity Percentage to Total Equity 7% 42% 35% 34% 0% Common to Preferred Relative Equity 1,387% 142% 189% 203% N/A PROJECT AND BOLIVAR PENINSULA 1.2 MILES OFFERING SUMMARY Star of Texas Regional Center Master Limited Partnership I, Ltd. 3

4 STAR OF TEXAS REGIONAL CENTER MASTER LIMITED PARTNERSHIP I, LTD. TERMS OF THE OFFERING Total Investment $550,000. Preferred Limited Partnership Unit $500,000. Administrative Fee $50,000. Preferred, Cumulative Return 3% per annum. Rights of Preferred Investors: o Preference to all cash distributions until investment and accumulated return repaid in full (excluding $50,000 Administrative Fee). o Same voting rights as Common equity owners. STRENGTHS AND OPPORTUNITIES Current Ownership has a greater investment in the business than do the Preferred Investors; economic interests are fully aligned between owner / sponsor and investors. Partnership controls the release and application of the $5,000,000 to BUS for Project development. No existing third party debt is owed by BUS. No third party debt allowed until repayment of the Preferred Investors. Sinking Fund created within BUS for the exclusive purpose of repaying the Preferred Investors. The business has a monopoly on wastewater treatment and distribution on the Bolivar Peninsula. Owners / operators of BUS are experienced in building and managing private utility companies. BUS is a subsidiary of a financially sound company with extensive resources to develop and maintain water treatment systems. Partnership has the right to force BUS to repay the Partnership investment of $5,000,000. EB 5 COMPLIANCE Star of Texas Regional Center is a duly authorized and accredited EB 5 Regional Center by USCIS. Project will be developed within a designated Targeted Employment Area ( TEA ). Project is projected to provide 142 full time jobs 42% more than the 100 jobs required by USCIS guidelines for 10 immigrant investors. All funds to be used for the Project provided by the Partnership are deployed into a separate, segregated bank account ( Special Project Account ) for EB 5 reporting and compliance purposes. All funds deployed from the Special Project Account may only be used for bona fide Project costs and must be authorized by the BUS Manager appointed by the Partnership. The Partnership EXIT STRATEGY In the event of Partnership liquidation, all proceeds go first to Preferred Investors to repay their investment and accumulated return, then to Common owners. In year four, the Partnership anticipates repaying the Preferred Investors their $500,000 investment along with the accumulated return. In the event repayment has not occurred, beginning in year five, the Preferred Investors have the right to demand liquidation of the Partnership and return of their investment. OFFERING SUMMARY Star of Texas Regional Center Master Limited Partnership I, Ltd. 4

5 The STAR OF TEXAS REGIONAL CENTER MASTER LIMITED PARTNERSHIP I, LTD. is composed of ten (10) preferred limited partnership units in an EB 5 compliant project. TO LEARN MORE PLEASE REQUEST A COPY OF THE COMPLETE PRIVATE OFFERING MEMORANDUM MoreInfo@EB5StarofTexas.com Westheimer Road Galleria Financial Center Suite 1150 Houston, Texas, THIS SUMMARY ANNOUNCEMENT IS INTENDED AS AN INTRODUCTION FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AND OFFERING. SALES WILL ONLY BE MADE TO ACCREDITED INVESTORS. NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED OR WILL BE ACCEPTED BY WAY OF THIS SUMMARY. THE SECURITIES HAVE NOT BEEN REGISTERED WITH OR APPROVED BY ANY STATE SECURITIES AGENCY OR THE U.S. SECURITIES AND EXCHANGE COMMISSION AND ARE BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM REGISTRATION. OFFERING SUMMARY Star of Texas Regional Center Master Limited Partnership I, Ltd. 5