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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Earnings for the full year 2013 also include an after-tax charge of $16 million, or 2 cents per share, for the restructuring of a leveraged lease investment recorded in the first quarter of 2013.
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.
Mesa Air Group has completed leveraged lease financing for two new Bombardier CRJ-700 aircraft with equity provided by GE Capital Aviation Services and senior and subordinated debt provided by DVB Bank AG and Citibank, respectively.
The aircraft leases are part of Whirlpool's leveraged lease portfolio in discontinued operations.
Simply put, a leveraged lease is a transaction where the lessor puts in a part (usually 20-40 percent) of the funds necessary to purchase the equipment and a third party lender supplies the remainder, hence the lessor's investment is leveraged with third party debt.
Integration of the Statement 13 leveraged lease accounting with the overall deferred tax computation should be much simpler.
A leveraged lease is 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.
16, 2010 /PRNewswire/ -- Pattern Energy Group LP (Pattern) today announced that MetLife has provided leveraged lease equity financing to Pattern's wholly owned subsidiary Hatchet Ridge Wind, LLC, the lessee of a 101.
9m, excluding a one-time leveraged lease portfolio tax gain of USD21.
Under the settlement, GE Capital has agreed to provide the airline with USD120m in debtor-in-possession financing, a USD360m loan for use after it emerges from Chapter 11, and USD350m of lease equity for the leveraged lease financing of regional jet aircraft.
Altria expects to pay approximately $500 million in federal and state income taxes and related estimated interest as a result of the resolution of previously disclosed tax dispute pertaining to certain leveraged lease transactions
01 Average Shares Outstanding (in millions) 791 769 785 768 End of Period Shares Outstanding (in millions) 796 771 Three Months Year-to-Date Ended June June 2009 2008 2009 2008 Consolidated Earnings-Excluding Items (See Notes) Net Income-As Reported $478 $417 $604 $776 Leveraged Lease Adjustment - 67 - 67 MC Asset Recovery Litigation Settlement - - 202 - - - - Net Income-Excluding Items $478 $484 $806 $843 Basic Earnings Per Share-Excluding Items $0.