How Credits Become Capital: When and How to Syndicate
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Transcript of How Credits Become Capital: When and How to Syndicate
How Credits Become Capital: When and How to Syndicate June 5, 2008
Jo Ann ClippSenior Manager
410-783-6232
Reznick Group Building Business Value
THE DEAL Structure Equity Guarantees Cash Flow Profits & Losses Investor Exit Options
Reznick Group Building Business Value
Reznick Group Building Business Value
Reznick Group Building Business Value
EQUITY
•Pricing•Pay-in Schedule•Adjusters
Reznick Group Building Business Value
Reznick Group Building Business Value
GUARANTEES
Construction Completion Against Recapture or Disallowance of
Credit Operating Deficits Exit Obligations
Reznick Group Building Business Value
CASH FLOW
Preferred Return Asset Management Fee Tax Preference Profit Motive
Reznick Group Building Business Value
Reznick Group Building Business Value
PROFITS & LOSSES
Profits - Tax Credit Investor 99.99% Owner
Losses - Depreciable Basis Reduced by Amount of Credit
Reznick Group Building Business Value
INVESTOR EXIT OPTIONS Put
•Timing •Percentage of Capital•Investor’s Exit Tax
Call•Timing•Fair Market Value
Reznick Group Building Business Value