Used in particular transactions involving complex and large-scale assets, such as airplanes, ships, industrial plant and equipment, and large real estate projects, a structured leasing transaction can fall within one of the following two categories: (i) leveraged transactions (mainly cross-border leasing with a trust); and (ii) synthetic leasing.
The increased tax benefits afforded by operating leasing have provided a strong stimulus to create "structured" transactions that give operating leasing the same characteristics as true financial leasing, the so-called synthetic leasing transactions.
She was involved in providing financing solutions that included syndicated loans, asset-backed securitization, high yield corporate bond, mezzanine debt, synthetic leasing
and business credit to middle-market companies as well as large corporations.
SEVIN, Additional Evidence on the Lease Choice Decision: A Study Incorporating the Use of Synthetic Leasing, Ph.
Empirical studies of incentive trade-offs in the leasing context assume that the lease choice is driven by a preference for one incentive over the other, but the mere existence of synthetic leasing suggests that some high marginal tax rate firms also want the advantages offered by off-balance-sheet financings.
Through the use of a technique known as synthetic leasing, Acxiom is financing the $30 million-$35 million building without having to carry the debt from the transaction on its balance sheet.
Synthetic leasing involves the creation of a special purpose entity (SPE) to own the property, though the SPE company need only own a small percentage, as little as 3 percent, according to SS&CT Technologies Inc.
The popularity of synthetic leasing, a common financing tool for years, may be waning after the Enron debacle has applied greater scrutiny to "creative accounting.
AOL Time Warner is such a firm--and they will reportedly stick with synthetic leasing on two major projects, one being the billion dollar AOL Time Warner Center in Manhattan.
has been studied both by academic researchers (Morsfield 1999; Weidner 2000) and by practitioners (Holmes 1996; Sandler 2000).
Hahn's practice focuses on the areas of asset securitization, residential and commercial mortgage securitization, equipment lease finance, synthetic leasing
, leveraged leasing and banking.
We also used a $75 million synthetic leasing
facility in connection with developing integrated cancer centers.