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

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

This program is included with the Strafford CLE Pass. Click for more information.
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Conducted on Tuesday, May 3, 2022

Recorded event now available

or call 1-800-926-7926

This CLE course will provide counsel with a review of the more nuanced aspects of credit tenant lease (CTL) financing as a financing vehicle. The panel will discuss structuring and documenting the transaction and meeting the interests of developers, lenders, tenants, and investors.

Description

CTL financing is an attractive alternative to traditional real estate financing that may result in lower debt service 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 discusses 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.

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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 is Co-Chair of the Chicago Corporate Practice. He focuses his practice on the representation of...  |  Read More

Persky, David
David Persky

Managing Director
CGA Capital

Mr.Persky joined CGA in 2024 as a Managing Director involved in the origination, structuring and distribution of CTL...  |  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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