secured lease obligation bond

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Secured Lease Obligation Bond

A debt security that is secured by a lease on an asset. That is, the revenue the issuer obtains from the lease guarantees payment on the bond. It is important to note that only the lease (or a lease coupled with a lien on the asset) secures the bond. This is a common financing tool for electric companies building power stations.

secured lease obligation bond (SLOB)

A debt obligation serviced by lease payments on a single asset. The debt may be secured only by the lease or by a combination of the lease and a lien on the asset being leased. SLOBs are used primarily by electric utilities to finance power stations.
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The Midland Cogeneration Venture Limited Partnership ("MCV") today announced that on July 23, 2002, it has made its final payment on the senior secured lease obligation bonds issued by the Midland Funding Corporation I.
CHICAGO -- Fitch Ratings has downgraded to 'B+' from 'BB-' the ratings on Midland Cogeneration Venture LP's (MCV) taxable secured lease obligation bonds due 2006.
II's subordinated secured lease obligation bonds from double-'B' to double-'B'-plus and affirmed its triple-'B'-minus ratings on Midland Funding Corp I's senior secured lease obligation bonds.
This includes all utility assets, $840 million of first-mortgage bonds, $85 million of pollution control revenue bonds, the Waterford 3 secured lease obligation bonds, and the payment obligation to System Energy Resources, Inc.
CHICAGO -- Fitch Ratings has downgraded to 'BB-' from 'BB' the ratings on Midland Cogeneration Venture LP's (MCV) taxable and tax-exempt outstanding secured lease obligation bonds due 2006 and 2009, respectively, and placed the ratings on Rating Watch Negative.
secured lease obligation bonds (SLOBs) 'BB+' (Double-B-Plus), and its preferred stock 'BB-' (Double-B-Minus).
33 percent senior secured lease obligation bonds (senior SLOBs), Series C, due 2002, to `BBB` (Triple-B) from `BBB-` (Triple-B-Minus) and the Midland Funding II subordinated secured lease obligation bonds (subordinated SLOBs), Series A, due 2005, to `BB` (Double-B) from `BB-` (Double-B-Minus).
8 million issuance through GG1C Funding Corporation (GG1C) of secured lease obligation bonds (SLOBs), 5.
Interest expense is expected to decline by more than $10 million in 1998 resulting from debt reductions and recent refinancings of secured lease obligation bonds and other long-term debt.
Fitch rates MCV's senior secured lease obligation bonds, series C, due July 23, 2002, at 'BBB'.
DCR) has assigned credit ratings to The United Illuminating Company (UIL) as follows: unsecured pollution control bonds, medium-term notes, notes and secured lease obligation bonds 'BBB' (Triple-B) and preferred stock 'BBB-' (Triple-B-Minus).
Fitch also affirmed the outstanding ratings as follows: first mortgage bonds 'A-', senior unsecured notes 'BBB+', secured lease obligation bonds 'BBB', variable-rate pollution control bonds 'F1+' and commercial paper 'F2'.