Bank of America Leasing

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Bank of America Leasing Capital Group
Presentation By Mr. Larry Smilie Managing
Director Bank of America Leasing Capital Group
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BALCAP Profile
Bank of America Leasing Capital, LLC
Company Information
BALCAP Profile
Bank of America Leasing Capital, LLC (BALCAP)
is a full service equipment leasing and finance
company. With 450 professionals located globally
in 32 offices and an owned and managed portfolio
of approximately 40 billion, BALCAP is the
largest bank owned leasing company in the United
States. During the last three years BALCAP has
arranged transactions with a cumulative equipment
cost of over 35 billion through a variety of
finance structures.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
3
BALCAP Groups
Bank of America Leasing Capital, LLC
Company Information
BALCAP Profile
U.S. Wholesale International Specialized
Lease Financing
Targets the large U.S. Corporate sector with
annual sales of over 500MM. It is focused on
tailoring highly engineered solutions to meet
specific corporate finance challenges. Targets
multinational and international clients where
custom-tailored, cross-border financing
structures offer optimized financial
results. Provides Lessors with Financial
advisory services including portfolio management,
acquisition, disposition and restructuring.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
4
BALCAP Groups
Bank of America Leasing Capital, LLC
Company Information
BALCAP Profile
Distributions Managed Investments Commer
cial Markets
Makes markets in lease and debt instruments
ranging in credit quality from CCC to AA. With
expertise in tax and accounting, the Distribution
Group broadens the servicing role that BALCAP
brings to its issuers. Responsible for managing
portfolios of lease and lease-related investments
for others through partnership structures and
contractual management agreements. Targets U.S.
based businesses with annual sales of less than
500MM. They provide a full range of BALCAP
services to its clients.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
5
BALCAP Products
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAP offers a wide variety of equipment
financing products
BALCAP Groups

• Advisory / Placement Services
• Single investor Leases
• Leveraged Leases
• Synthetic Leases (Off-balance sheet loans)
• Cross-Border Products
• TRAC Leases
• Finance Leases
• Leveraged Lease Debt
• Conditional Sales

BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
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Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Premier provider of globally integrated capital
asset financing services structured to meet
clients unique objectives.
BALCAP Groups
BALCAP Products
Strategy
Capital Raising
Tax
Leasing Needs and Solutions
Accounting
Asset Management
Why Lease?
Liquidity
Investment
Services
Roles

• Integrated with Bank of Americas Global
  Corporate and Investment Bank client strategies
• Flexible and broad product suite
• Bias toward intermediation/distribution

Market Conditions
Markets
Leasing Trrends
Recent Deals
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Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAPs Strategic Priorities
BALCAP Groups
BALCAP Products
Strategy

• Become the top structured asset finance
  institution in the world.
• Build effective links between capital and tax
  markets worldwide.
• Become the major participant in the secondary
  market.

Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trrends
Recent Deals
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Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAPs Strategy
BALCAP Groups
BALCAP Products
Strategy

• Flexibility in structuring financial solutions to
  meet client accounting, tax and capital
  objectives.
• Intermediation of tax, issuer credit and
  equipment value elements among optimal funding
  sources and taxing jurisdictions.
• Global reach to enhance origination and
  distribution channels as well as product breadth.
• Active Portfolio Management enabled by secondary
  market and trading services.

Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trrends
Recent Deals
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Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAPs Operating Principals
BALCAP Groups
BALCAP Products
Strategy

• Strategic customer relationships are created by
  delivering high-value ideas as a consultant.
• Customer-driven delivery requires tailored
  solutions executed effectively, at market prices.
• An advisory / distribution bias presents
  neutrality regarding use of our capital. Bank of
  America may not be the optimal source of capital
  or counter-party risk (e.g., residual values,
  credit exposure, etc.)

Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trrends
Recent Deals
10
Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAPs Competitive Advantages include
BALCAP Groups
BALCAP Products
Strategy

• BALCAP maintains a global presence that enhances
  distribution channels as well as enhancing
  product breadth.
• Tremendous market experience and staying power in
  U.S. and International markets.
• Expertise in combining tax, accounting and legal
  issues with financing solutions.

Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trrends
Recent Deals
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Strategy
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Integrated Functions
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trrends
Recent Deals
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Why Lease?
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Tax Management Considerations Financial
Reporting Considerations
Who is the most beneficial owner of the equipment
- lessee or lessor? The lessee can arbitrage tax
benefits which otherwise wouldnt be used on a
timely basis for either domestic or foreign
jurisdictions. Benefits of on and off-balance
sheet reporting. Off-balance sheet structures
usually improve reported ROE and ROA and
additionally may have limited or no impact on
financial covenants and bond indentures.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
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Why Lease?
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Cash Management Economic Asset Risk
Management
Provides 100 financing for terms approaching the
equipments useful life. This typically results
in a longer term than other financial
instruments. To obtain the lowest after tax cost
of financing. Mitigate against technological
obsolescence.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
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Services
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAP Groups

• In order for BALCAP to find the most effective
  financial solution for its clients, it provides
  the following services
• Tax, GAAP and Regulatory Staff
• In-House Legal Staff
• Documentation / Contract Administration
• Financial Analysis
• Equipment Management
• Investment Management
• Portfolio Modeling and Analysis
• Portfolio Management
• Trading and Secondary Markets
• Lease Distribution and Syndication
• Underwriting

BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
15
Roles
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Lessee Advisor Lessor Advisor
BALCAP will represent the lessee in the lease
equity and debt markets to place the transaction
at the lowest possible cost to the lessee. This
will be accomplished by clearing the investor
market, managing the pricing aspects of the
transaction and negotiating the terms and
conditions. After an award is made, BALCAP will
advise the lessee during the documentation
process and manage the transaction
closing. BALCAP will provide value to an
investor by supplying market information, pricing
services, equipment analysis and strategic input
during the bidding process. After an award is
made, BALCAP will represent the interests of the
lessor during the negotiation of the documents
and the closing process.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
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Roles
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
Arranger Syndicating Principal Underwritin
g
BALCAP uses its market knowledge and expertise in
the leasing of capital equipment to arrange
syndications of debt and equity investors to
provide optimal lease financing. BALCAP may
invest its own capital, at market price, in a
portfolio of lease financing and arrange the
remainder of the syndicate in the
transaction. Bank of America may underwrite
transactions providing certainty for the lessee
and subsequently syndicate to one or more
investors.
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
17
Markets
Bank of America Leasing Capital Group
Company Information
BALCAP Profile
BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
18
Leasing Trends
Bank of America Leasing Capital Group
Company Information
BALCAP Profile

BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Source www.elaonline.com
Recent Deals
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Recent Deals
Bank of America Leasing Capital Group
Company Information
BALCAP Profile

• 1,600,000,000 Commercial Paper (CP) funded,
  97-10 Synthetic Lease financing for Goldman
  Sachs. Bank of America acted as Arranger and
  Participant in the financing of a building
  complex which utilized multiple conduits.
• 930,000,000 CP funded Master Lease facility for
  Time Warner, Inc. Bank of America acted as
  Arranger and Participant in the financing of real
  estate, broadcasting production facilities and
  business aircraft.
• 825,000,000 CP funded 97-10 Synthetic Lease
  financing for Dominion Resources. Bank of
  America acted as Arranger and Participant in the
  financing of new turbines.
• 627,000,000 Synthetic Lease financing for
  General Motors. Bank of America acted as
  Underwriter, Equity Investor and Syndicator of
  liquidity lines in the financing of real estate
  for corporate headquarters.

BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals
20
Recent Deals
Bank of America Leasing Capital Group
Company Information
BALCAP Profile

• 478,000,000 Cross-Border Lease financing for
  Aircraft for Lufthansa. Bank of America acted as
  an Equity Investor and Syndicator.
• 349,250,000 CP funded Synthetic Lease for
  Phillips Petroleum Company Marathon Oil
  Company. Bank of America acted as Arranger and
  as a participant in the refinancing of two LNG
  tankers.
• 320,000,000 Leverage Lease financing of
  locomotives and railcars for Union Pacific
  Railroad Company. Bank of America acted as the
  Advisor and Syndicator for the Equity portion.
• 200,000,000 Leverage Lease financing of
  locomotives for Burlington Northern Santa Fe
  Railway Company. Bank of America acted as an
  Equity Investor and Syndicator.
• 130,000,000 Cross-Border Lease financing of
  aircraft for Air France. Bank of America acted
  as an Equity Arranger.

BALCAP Groups
BALCAP Products
Strategy
Leasing Needs and Solutions
Why Lease?
Services
Roles
Market Conditions
Markets
Leasing Trends
Recent Deals