leveraged lease

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Leveraged lease

A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset. The lender has a lien on the assets and a pledge of the lease payments to secure the borrowing.

Leveraged Lease

A lease in which a bank or other financial institution provides the lessor (the party granting the lease and retaining title to the lease good) with credit, which the lessor then uses to finance the lease. For example, suppose a car dealer (lessor) extends a lease to someone buying a car (lessee). The lessor may take a loan from a bank in order to receive capital from the lease of the car while the lessee drives away with the car. The lessee then makes payments on the lease, which the lessor then uses to repay the loan to the bank. Importantly, the lessor may take the leased asset away from the lessee if the lessee defaults, and the bank may do the same if the lessor defaults.

leveraged lease

A long-term lease in which a major part of the purchase price of the to-be-leased asset is financed by a third party. Thus, the lessor uses a combination of its own funds and borrowed money in order to purchase the asset that is then leased to another party.
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to/2nmxCe8), updated in March 2017 and downloadable as a 283-page PDF and iBook application for iPads, discusses arrangements that fall under the new lease guidelines, classification and accounting for lessors and lessees, unique leasing transactions such as sale leasebacks and leveraged leases, and financial statement presentation.
Managing a portfolio of nearly USD 80 billion as of June 30, 2017, Prudential Capital offers senior debt and junior capital, leveraged leases, and equipment financing to companies and projects worldwide.
6 billion as of December 31, 2014, Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases, and equipment finance to companies, worldwide.
Single-investor leases and leveraged leases are two categories of true leases.
FASB has issued a staff position that requires companies to recalculate their leveraged leases if there is a change in the timing of cash flows relating to income taxes generated by the leveraged lease.
Leveraged leases can be a complex and intricate vehicle for financing equipment in today's marketplace.
This applies to leveraged leases (where the lessee retains tax benefits) and it is aimed at further tightening the definition of a lease; however, these finance lease laws don't actually go into effect until 1987.
1 billion as of June 30, 2014, Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases, and equipment finance to companies, worldwide.
ED2 would eliminate existing leveraged lease accounting by the lessor and would also require the lessor to apply the R&R approach to existing leveraged leases retrospectively.
5m on the early termination of leveraged leases for two cargo ships and a loss of USD1m on the sale and termination of an aircraft lease.
42 per share related to the tax treatment of leveraged leases.
Managing a portfolio of more than $65 billion as of September 30, 2012, Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases, and equipment finance to companies, worldwide.