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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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.
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.
8 million issuance through GG1C Funding Corporation (GG1C) of secured lease obligation bonds (SLOBs), 5.
Fitch rates MCV's senior secured lease obligation bonds, series C, due July 23, 2002, at 'BBB'.
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'.
In November 1997, the owner trustee issued its Seabrook 1 Secured Lease Obligation Bonds, 7.
First Mortgage Bonds, `A-`; -- Senior Unsecured Notes, `BBB+'; -- Secured Lease Obligation Bonds, `BBB'; -- Commercial Paper, `F2'.
147 billion in pass-through certificates representing secured lease obligation bonds guaranteed by MG and backed by an EME note to MG, which will keep the transaction credit neutral to EMM lenders.
147 billion in pass-through certificates, representing interests in secured lease obligation bonds, and then guaranteeing MG's obligations to the new Owner Trusts.
Long-term debt ratings upgraded to A3 from Baa1 include UI's secured lease obligation bonds, unsecured pollution control bond and notes.
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.