Credit Tenant Loan Finance

The Credit Tenant Loan Finance Group has built on Chapman and Cutler LLP's broad experience in secured and unsecured financing to focus necessary resources in the area of credit tenant loan finance.

Over the last three years, the Credit Tenant Loan Finance Group participated in credit tenant loan transactions involving over $1 billion per year.

The experience and ability of the large group of Chapman and Cutler attorneys who devote their practice to corporate finance including credit tenant loan transactions, is widely recognized. The firm regularly represents institutional investors in numerous credit tenant loan transactions of varying size and complexity.

The firm's breadth of experience in credit tenant loan transactions includes a wide variety of issues including structural issues. We have a national reputation in this regard and are regularly selected by placement agents to serve as investors' counsel in credit tenant loan transactions.

Additionally, we are regularly called upon to review and analyze the structure of proposed credit tenant loan transactions and prepare NAIC filing packages for institutional investors in compliance with Securities Valuation Office guidelines for Schedule D treatment.

Related Practices

Representative Transactions

• Our practice group negotiated a $327 million ground lease financing of 839 restaurant sites leased to one of the world's leading food service retailers. This transaction included the innovation of tenant self-insurance for title coverage.
• When a major northeast university needed $22 million in construction financing, we negotiated the transaction.
• The firm assisted one of the world's largest banks in a complex $200 million, seventeen-property credit tenant lease financing.
• We negotiated an $18.9 million single-property credit tenant loan financing of the main branch of the U.S. Postal Service located in a major city in the Northeast.
• We served as counsel during a $60 million credit tenant loan financing negotiation for six medical office buildings and hospitals in the upper Midwest. The deal included a bank-financed portion with interest reset after five years.
• When a technology company needed $38 million to purchase a data center in the Northeast, Chapman and Cutler was retained for the financing, which was structured as a credit tenant loan, involving a long-term lease of the property to a major U.S. bank. The credit tenant loan structure provided the company substantially greater value than alternative sale options. With the firm operating in bankruptcy, the asset sale was conducted through a bankruptcy court-approved Section 363 auction.
• Chapman and Cutler was engaged for a $100 million multiple-property letter of a credit-backed construction financing program for major oil company.
• We negotiated $60 million in construction financing for a retail shopping center located in Chicago.
• Additionally, the firm handled a $6 million single-property sub-sublease financing for a grocery chain. The sub-sublessor obtained its interest by securing designation rights during bankruptcy proceedings involving the former retail user of the property.
• Chapman and Cutler attorneys collaborated on a $28 million single-property financing negotiation for a healthcare provider with a condominium ownership structure.
• We provided legal representation on a $15 million REMIC pool for a retail chain.
• The firm was retained to negotiate a $310 million "lease securitization" of the rents payable by a large U.S. bank for a Class A office tower used as its regional corporate headquarters on the West Coast.
• When an Alaskan regional corporation sought $40 million in single-property credit tenant loan financing for its headquarters, we were selected for the engagement.
• Our practice group handled a $125 million senior unsecured note issuance used to finance the construction of the national headquarters of a major insurance company, later converted into a credit tenant loan transaction upon the completion of the project.