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Provides long-term, fixed-rate debt financing for operationally essential assets, such as manufacturing facilities and transportation assets.
| Structural Characteristics |
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Leveraged lease of key operating assets, such as manufacturing equipment, rolling stock, etc. |
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Multiple lease types: operating, capital and synthetic leases |
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Flexible payment structure |
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Medium- to long-term maturity, from three to 25+ years |
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Provides long-term, fixed-rate debt financing for operationally essential real estate, such as headquarters/office buildings, manufacturing plants, distribution centers and retail locations.
| Structural Characteristics |
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Sale/leaseback or build-to-suit of corporate headquarters, office buildings, warehouses, distribution centers or retail stores |
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Bond or credit leases |
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Flexible payment structure |
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Medium- to long-term maturity, from three to 25+ years |
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| Typical Size |
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$15 million - $100 million |
| Scale and Commitment |
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Investing in middle-market leveraged transactions for more than 50 years |
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Invested more than $1.4 billion in lease-backed transactions since 2003 |
Issuer Benefits
Benefits to the Lessee: |
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Operating lease treatment |
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Off-balance sheet financing |
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Improves return on assets |
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Improves leverage metrics |
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Tax benefits |
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The lessee controls the asset long-term |
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Optimization of capital |
| Advantages relative to issuing in public markets: |
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Attractive economics, particularly for private placements less than $500 million |
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Size and depth of market |
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Tailored transactions |
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Limited disclosure |
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No requirement for rating agencies |
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All-in costs |
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Quick and efficient execution |
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