BarbriSFCourseDetails

Course Details

This CLE course will provide an advanced overview of credit tenant lease (CTL) financing. The panel will discuss the trends and developments in CTL financing, examine the common structures and terms for CTL loans, and highlight the advantages and disadvantages of this type of financing under current market conditions.

Faculty

Description

CTL financing is an attractive alternative to traditional real estate financing that may result in a lower interest rate and higher loan-to-value for owners and developers. CTL financing is suited for property leased to a single tenant with a high credit rating under a financeable net lease and is secured by the future stream of payments of the credit tenant as opposed to the property itself.

CTLs are typically structured as bond or triple-net leases but can also be double-net leases. Although the terms for CTL loans vary, they usually include slightly lower interest rates, higher loan-to-value ratios, a lower debt service coverage requirement, and they are fully amortized over a longer period that usually matches the lease term.

The adaptability of CTL financing provides multiple benefits for developers, lenders, tenants, and investors. However, there are also downside risks and challenges that must be weighed in each financing situation.

Listen as our authoritative panel examines the terms and structures for CTL financing and highlights the benefits and risks associated with these types of loans from the perspective of developers, lenders, tenants, and investors.

Outline

  1. Overview: CTL financing under current market conditions
  2. Sectors using CTL financing
  3. Trends and developments
  4. Criteria for CTL financing
    1. Tenant creditworthiness
    2. Lease structure
  5. Terms and structures of CTL loans
  6. Benefits and risks of CTL financing for developers, lenders, tenants, and investors
  7. CTLs and sale leasebacks
  8. Other key considerations and practice pointers

Benefits

The panel will discuss these and other key considerations:

  • How are current market conditions impacting CTL financing?
  • What are the basic criteria for CTL financing?
  • What are the common terms and structures for CTL loans?
  • What are the benefits and risks of CTL financing?