AA- Healthcare Company (Non-Profit)

 

$100 million

 

20 years

 

$6,997,199 (3.56% interest rate)

 

2.25%

 

 

$60,000,000 improvement to Healthcare Company's Net Assets on its Statement of Financial Position

 

 

Lease Without
$1.00 Buy-Out

 

 

$174,310,856

 

 

 

N/A

 

 

$5,320,286

 

 

 

CLI Lease

 

 

$114,310,856

 

 

 

$60,000,000

 

 

$0

 

 

 

 

 

CLI Advantage

 

 

$60,000,000 (improves Lessee's bottom line/Increase of Net Assets on its Statement of Operations)

 

 

$60,000,000 (improves Lessee's Net Assets on its Statement of Financial Position)

 

 

$5,320,286 (annually)

Lessee:

 

Project Cost:

 

Lease Term:

 

Initial Annual Rent:

 

Annual Rent Escalations:

 

Reclassified Asset Without

Liability at End of Lease Term

 

 

 

 

 

 

Total Lease Expense

 

 

Asset With No Liability

At End of Lease Term

 

Annual Lease Expense after

Lease Term

 

 

The CLI Lease Advantage Over An Operating Lease or Lease Without $1.00 Buy-Out

CLI ADVANTAGE

COMPARISON TO LEASE WITHOUT $1.00 BUY-OUT (with same rent, actual CLI rent is generally lower)

 

LEASE (Recent Example - 20 year Sale-Leaseback)

Lessee:

 

Project Cost:

 

Lease Term:

 

Initial Annual Rent:

 

Annual Rent Escalations:

 

Reclassified Asset Without

Liability at End of Lease Term

 

AA- State Government

 

$50 million

 

20 years

 

$3,394,886 (3.22% interest rate)

 

2.25%

 

 

$25,000,000 improvement to State's Net Assets on Statement of Financial Position

 

LEASE (Recent Example - 20 year Lease Restructuring)

COMPARISON TO LEASE WITHOUT $1.00 BUY-OUT (with same rent)

 

 

 

 

 

Total Lease Expense

 

 

Asset With No Liability

At End of Lease Term

 

Annual Lease Expense after

Lease Term

 

 

 

Lease Without

$1.00 Buy-Out

 

 

$84,571,768

 

 

 

N/A

 

 

$2,646,324

 

 

 

CLI Lease

 

 

$59,571,768

 

 

 

$25,000,000

 

 

$0

 

 

 

 

 

CLI Advantage

 

 

$25,000,000 (improves State's bottom line/Increase of Net Assets on its Statement

of Operations)

 

 

$25,000,000 (improves State's Net Assets on Statement of Financial Position)

 

 

$2,646,324 (annually)

LEASE (Recent Example - 20 year to-be-built project)

Lessee:

 

Project Cost:

 

Lease Term:

 

Initial Annual Rent:

 

Annual Rent Escalations:

 

Reclassified Asset Without

Liability at End of Lease Term

 

A- Public Company

 

$100 million

 

20 years

 

$7,089,171 (3.71% interest rate, which is a higher rate to cover CLI's investment during 18 months construction period)

 

2.25%

 

 

$64,639,280 improvement to Public Company's Tangible Net Worth

 

COMPARISON TO LEASE WITHOUT $1.00 BUY-OUT (with same rent)

 

 

 

 

 

 

 

Total Lease Expense

 

Asset With No Liability

At End of Lease Term

 

Annual Lease Expense after

Lease Term

 

 

 

 

 

Lease Without

$1.00 Buy-Out

 

 

$184,334,157

 

 

N/A

 

 

$5,672,636

 

 

 

 

 

CLI Advantage

 

 

$64,639,280 (improves Lessee's bottom line on its Statement of Income)

 

 

$64,639,280 (improves Lessee's Tangible Net Worth on its Balance Sheet)

 

 

$5,672,636 (annually)

 

 

 

 

CLI Lease

 

 

$119,694,877

 

 

$64,639,280

 

 

$0

 

 

 

Credit Lease Investments, LLC

HEADQUARTERS

CLI's Senior Partners' office is located in Vernon Hills, Illinois, a northwest suburb of Chicago.  CLI's Project Partners are located nationwide.

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CLI does not provide tax or accounting advice.  Each Lessee and Sublessee should consult its own tax and accounting professionals regarding the CLI Lease.

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