Legal Foundations and Strategic Structuring of Lease Financing

The first session of this two-part series will cover a history of lease financing and examine the landmark court cases whose rulings created the “lease exception” to the state’s constitutional debt limit. Speakers will examine how the legal framework directly influences the compulsory structural elements of lease financings but also discuss those elements where the law is less settled and thoughtful decision-making by issuers is warranted. The session will provide issuers with practical guidance on separating the legally essential from financing decisions, such as debt service structure, fair rental value, overcollateralization, abatement, right to relet, insurance, substitution, and bankruptcy, among others.

Materials:

• Slides
• Webinar Replay
• Transcript

Speakers:

• David Brodsly, Managing Director, KNN Public Finance
• Daniel (Dan) Deaton, Partner, Nixon Peabody LLP
• John Palmer, Partner, Orrick, Herrington & Sutcliffe

The second session will focus on understanding the business and financing decisions agencies face in lease transactions, especially the features that may have been perceived as investor requirements that may no longer be so. Speakers will examine why these certain decisions, previously considered non-negotiable, may, in fact, not be as essential as previously thought, such as insurance requirements, asset selection, and remedies. Through practical insights and expert guidance, this session will help public agencies to make informed financing decisions when navigating their lease financings.

Materials:

• Slides
• Webinar Replay
• Transcript

Speakers:

• Margaret (Margie) Backstrom, Managing Director, Morgan Stanley
• Daniel (Dan) Deaton (Moderator),  Partner, Nixon Peabody LLP
• Melissa Shick, Managing Director, KNN Public Finance
• Anna Van Degna, Public Finance Director, City and County of San Francisco