Leveraged Lease Analysis 

Cross-border leasing transactions are complicated structured finance transactions that can provide financing and reallocate economic risk among the various parties.  CFP provided an economic analysis of the risks and rewards to the various parties and the implications for their economic behavior.  The Court ruled in favor of the Government.

The transaction concerned a leveraged lease and sublease between BB&T, a financial services company and Sodra, an owner of large pulp manufacturing facilities in Sweden.  The behavior of brokers, investment banks, commercial lenders and the immediate parties were analyzed.  The economic risks and rewards associated with the leasehold positions, defeasance accounts, letters of credit and other elements of cash flow and risk management were all analyzed.