STRUCTURED FINANCE

Cornerstone provides structured finance services to owners of cash-flowing assets seeking sophisticated financing solutions. Assets such as leased real estate, debt instruments, bonds, and lease payment streams are suitable for securitization. Cornerstone’s structured finance services include designing, underwriting, analyzing, modeling and privately placing new securities. Cornerstone works with the borrower from conceptual transaction design and analysis, through underwriting and cash flow modeling, ratings agency review and investor due diligence, offering memorandum, final documentation, closing and settlement.
Structured finance typically involves placing cash generating assets into a specialized holding entity such as a trust or corporation which meets the legal, tax, regulatory and accounting requirements of the transaction. Transaction characteristics such as over-collateralization, cross-collateralization, subordination, cash reserves, insurance, trigger mechanisms, liquidity support, and ratings agency grades are applied to the transaction to balance the needs of the sponsor with the needs of the investors. Interests, certificates or other security participations are sold to institutional investors who participate in the cash flows, profits, losses and tax effects of the assets based on the contractual and structural requirements.

Cornerstone’s structured financing for borrowers is funded through institutional private placements of securities which may be characterized as asset backed securities (ABS), commercial mortgage backed securities (CMBS), esoteric securities, leveraged lease certificates, synthetic lease financing notes, or other security descriptions.
"It was a pleasure working with you on the Bowling Green lease. You and your colleagues worked in a very professional manner. I hope to find additional projects on which to work together."

Jeffrey A. Denker
Treasurer
Owens-Illinois