Structuring Credit Tenant Lease Financing: Balancing Interests of Developers, Lenders, Tenants and Investors

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, March 15, 2018

Recorded event now available

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Program Materials

This CLE webinar will provide counsel with a review of using and understanding the more nuanced aspects of credit tenant lease (CTL) financing as a financing vehicle for developers and owners, structuring and documenting the transaction, and meeting the interests of developers, owners, lenders, tenants and investors.

Description

CTL financing is an attractive alternative to traditional real estate financing that may result in a lower interest rate and higher loan-to-value for owners and developers. CTL financing is suited for property leased to a single investment grade tenant under a financeable net lease.

Because the CTL structure is treated as a bond rather than a real estate loan for certain institutional investors’ regulatory capital treatment, additional structuring and specific documentation are needed to satisfy the unique standards of these investors.

Listen as our panel instructs real estate finance counsel on the advantages and disadvantages of CTL financing with a focus on structuring and documenting the transaction, including more specific focus on “Special Risk Insurance,” “Residual Value Insurance”, recourse carveouts in CTLs and more. The panel will look at the issues from the perspectives of developers, lenders, tenants and investors.

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Outline

  1. Trends in credit tenant lease financing
  2. Lease financeability
  3. Special Risk Casualty and Condemnation Insurance
  4. Balloons and Residual Value Insurance
  5. Recourse Carveouts and other Mitigants
  6. Structuring and documenting the construction to permanent transaction

Benefits

The panel will review these and other key issues:

  • What are the recent trends in CTL financing?
  • What are features that make CTLs unique?
  • What factors and lease provisions make the underlying lease financeable?
  • How can a less than “perfect” lease be financed with a CTL?

Faculty

LaSota, David
David J. LaSota

Shareholder
Greenberg Traurig

Mr. LaSota focuses his practice on the representation of institutional investors in advising, structuring and...  |  Read More

Persky, David
David Persky

Managing Director
TIAA-CREF

Mr. Persky is a managing director in Global Private Markets for his organization. He is a member of the Private...  |  Read More

Robson, Michael
Michael D. Robson

Shareholder
Greenberg Traurig

Mr. Robson focuses his practice on corporate, project and structured finance transactions, including public-private...  |  Read More

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