secured lease obligation bond


Also found in: Dictionary, Thesaurus, Acronyms.

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.
Mentioned in ?
References in periodicals archive ?
secured lease obligation bonds 'BB-' (Double-B- Minus); Beaver Valley II Funding Corp.
secured lease obligation bonds 'BB-' (Double-B-Minus); Beaver Valley II Funding Corp.
secured lease obligation bonds "BB-" (Double-B- Minus); Beaver Valley II Funding Corp.
secured lease obligation bonds "BB-" (Double-B-Minus); Beaver Valley II Funding Corp.
secured lease obligation bonds from "BB-" (Double-B-Minus) to "BB" (Double-B) and preferred stock from "CCC" (Triple-C) to "B" (Single-B).
has downgraded the credit ratings of Cleveland Electric Illuminating Company's (CEI) first mortgage bonds and medium-term notes from "BB+" (Double-B-Plus) to "BB" (Double-B); Mansfield secured lease obligation bonds from "BB" (Double-B) to "BB-" (Double-B-Minus); Beaver Valley secured lease obligation bonds from "BB-" (Double-B-Minus) to "B+" (Single-B-Plus); and preferred stock from "B" (Single-B) to "B-" (Single-B-Minus).