Process and architecture for structuring facilities revenue bond financings

Abstract

A process and architecture may be implemented to structure ESFRB financing or refinancing for Municipal Facilities operation, construction and/or renovation to improve economic and business terms for involved or interested parties, including without limitation, a Municipal Entity which owns, for example, water/sewer facilities, airports, seaports, bus and train transit systems, toll roads and bridges, parking lots and/or energy plants.

1 . A process for obtaining financing, the process comprising:
 forming a single-purpose business entity (SPE), with at least one operating requirement that establishes separateness of the single-purpose business entity from one or more separate business entities;   transferring the one or more separate business entities' facility or equipment lease obligations to the SPE;   assigning rights to revenues of the facility or equipment to the SPE;   forming a lessee relationship with the single-purpose entity wherein a third party pays the revenues to the SPE;   obtaining a rating from a rating agency, wherein the rating agency computes, in a programmed machine, a credit rating for the financing using a formula that has as a parameter the revenues of the SPE, the computed credit rating being superior to a credit rating available to the one or more business entities; and   securing bond financing for the facility or equipment on a basis of the computed credit rating including issuing bonds with a rating established at least in part in view of a facility or equipment.   
     
     
         2 . The process of  claim 1 , including the additional steps of treating the single-purpose business entity as a disregarded entity if there is only one separate business entity and treating the single-purpose business entity as a partnership if there is more than one separate business entity. 
     
     
         3 . The process of  claim 1 , wherein there are existing bonds for the facility or equipment and wherein the step of securing bond financing includes refinancing the existing bonds with a rating established at least in part in view of a facility or equipment. 
     
     
         4 . The process of  claim 1 , wherein the transferring, assigning, forming and securing steps restructure financing architecture concerning one of a ground lease, a lease assignment, and a subleaseback. 
     
     
         5 . The process of  claim 1 , wherein the transferring, assigning, forming and securing steps restructure financing architecture concerns a ground lease plus loan architecture. 
     
     
         6 . The process of  claim 1 , wherein the forming step having the at least one operating requirement that establishes separateness of the single-purpose business entity from the one or more separate business entities comprises establishing a board of managers including at least two independent managers unrelated to the one or more separate business entities. 
     
     
         7 . The process of  claim 1 , wherein the forming step having the at least one operating requirement that establishes separateness of the single-purpose business entity from the one or more separate business entities comprises establishing a board of managers including at least one independent manager unrelated to the one or more separate business entities. 
     
     
         8 . The process of  claim 1 , wherein the step of securing a bond issuance generates funds, the method including the additional step of allocating the funds financing for purchase, construction or renovation of a public use facility or equipment. 
     
     
         9 . The process of  claim 1 , wherein the step of securing a bond issuance generates funds, the method including the additional step of allocating the funds financing for purchase, construction or renovation of an airport-related facility or equipment. 
     
     
         10 . The process of  claim 1 , wherein the step of securing a bond issuance generates funds, the method including the additional step of allocating the funds financing for purchase, construction or renovation of a facility or equipment for a port facility. 
     
     
         11 . The process of  claim 1 , wherein the step of securing a bond issuance generates funds, the method including the additional step of allocating the funds financing for purchase, construction or renovation of a facility or equipment for road transportation or rail transportation. 
     
     
         11 - 13 . (canceled) 
     
     
         14 . A process for obtaining financing, the process comprising:
 forming a single-purpose business entity (SPE), with at least one operating requirement that establishes separateness of the SPE from one or more separate business entities including establishing a board of managers including at least of: one independent manager and at least two independent managers, the independent manager being unrelated to the one or more separate business entities and establishing the SPE to not be authorized to liquidate or to file in bankruptcy without approval of all its managers, including the independent managers;   transferring the one or more separate business entities' facility or equipment lease obligations to the SPE;   assigning rights to revenues of the facility or equipment to the SPE;   forming a lessee relationship with the single-purpose entity wherein a third party pays the revenues to the SPE;   obtaining a rating from a rating agency, wherein the rating agency computes, in a programmed machine, a credit rating for the financing using a formula that has as a parameter the revenues of the SPE, the computed credit rating being superior to a credit rating available to the one or more business entities; and   securing bond financing for the facility or equipment on a basis of the computed credit rating including issuing bonds with a rating established at least in part in view of a facility or equipment.   
     
     
         15 . A process for obtaining financing, the process comprising:
 forming a single-purpose business entity (SPE), with at least one operating requirement that establishes separateness of the single-purpose business entity from one or more separate business entities including establishing a board of managers or directors including at least one independent manager or director unrelated to the one or more separate business entities;   transferring the one or more separate business entities' facility or equipment lease obligations to the SPE;   assigning rights to revenues of the facility or equipment to the SPE;   forming a lessee relationship with the single-purpose entity wherein a third party pays the revenues to the SPE;   obtaining a rating from a rating agency, wherein the rating agency computes, in a programmed machine, a credit rating for the financing using a formula that has as a parameter the revenues of the SPE, the computed credit rating being superior to a credit rating available to the one or more business entities; and   securing bond financing for the facility or equipment on a basis of the computed credit rating including issuing bonds with a rating established at least in part in view of a facility or equipment.   
     
     
         16 . The process of  claim 15 , wherein a consent of one or more independent managers or directors is required in order to file a bankruptcy petition. 
     
     
         17 . The process of  claim 15 , wherein a consent of one or more independent managers or directors is required in order to file an insolvency petition. 
     
     
         18 . The process of  claim 15 , wherein a consent of one or more independent managers or directors is required in order to institute insolvency proceedings. 
     
     
         19 . The process of  claim 15 , wherein the SPE incurs related debt, but is limited in incurring any additional indebtedness other than the related debt. 
     
     
         20 . The process of  claim 15 , wherein the SPE is at least one of: a corporation, a limited liability company, a limited partnership and a statutory trust.