CWM attorneys close on financing to expand aluminum processing plant in Foley, Alabama
On September 4, 2013, CWM attorneys Delphine Carnes and Harriet Reynolds closed on a transaction that utilized both federal and Alabama state new markets tax credits (“NMTCs”) to substantially expand the Vulcan Aluminum Processing Plant (“Vulcan”) located in a severely distressed non-metropolitan census tract in Foley, Alabama. Vulcan’s facility processes hot-rolled aluminum into street signs. This complex $22.5 million NMTC transaction involved three Community Development Entities (“CDEs”); Capital One served as the equity investor. CWM represented Hampton Roads Ventures, L.L.C. (“HRV”), a Virginia-based CDE. HRV’s investment of $12.5 million of its Round 10 NMTC allocation allowed Vulcan to double its manufacturing capacity and bring sixty (60) full-time manufacturing jobs with comprehensive benefits to an area of Alabama that has struggled with high poverty and unemployment rates. In addition to the manufacturing positions created, the Vulcan project will also generate hundreds of supplemental jobs related to the construction of the facility and transportation of supplies and finished goods. Construction on the project is underway and the new, state-of-the-art facility is anticipated to be in full operation by January 2014.