Large Ticket Transactions
Commodore arranges financial structures for leveraged leasing, project finance, and other private market financings.
- Typically these transactions involve equipment or assets in:
- Aircraft (fixed wing and rotary)
- ISO Intermodal Containers
Commodore functions as advisor to corporations and institutional clients concerning the structuring and/or as agent in the placement of debt in equipment leasing and asset based financing.
Whenever practical and for cost of assets in excess of US$5 million, Commodore is active in the structuring of cross-border transactions for placement of debt and equity to take advantage of differing tax and accounting rules in various countries.
Mergers and Acquisitions
Commodore advises on M&A for the sale of companies or the divestiture of selected divisions. The range of services provided to clients includes analysis, valuations, strategy, advisory on possible partnerships, and the search for buyers. Two recent transactions included a trailer fleet sale and the sale of various Great Lakes vessels.
Cross-Border Leases involve participants residing in two separate legal jurisdictions. This situation can arise when a vendor/owner is in one country and the end-user of the equipment/asset is in another.
Most importantly, cross-border financing structures can take advantage of governmental export programs, incentives and differing tax treatment of assets between national jurisdictions. Structuring these considerations into a transaction can afford parties to the transaction unique and advantageous tax treatment concerning an asset.
For example, a single asset can be depreciated in two countries (commonly called a “double-dip”) which can reduce the overall cost of financing the transaction.
Commodore has worked with various export credit agencies (U.S., Denmark and Sweden) and development banks in addition to its traditional lending sources.
Areas in which Commodore can utilize cross-border structuring include:
Aircraft (fixed wing and rotary) – financing for this asset type is usually accomplished through tax advantaged structures, such as leveraged leases, double-dip leases, and foreign sales corporation supported structures; and,
Vessels & ISO Intermodal Containers – the assets in this category, which include containers, chassis and fleets of tractors and trailers, are customarily financed through debt, single investor leases, and leveraged leases as well as tax advantaged structures.
Commodore personnel are familiar with these financing structures and will provide this service to vendors and end-users alike. The Company has closed cross-border transactions in Denmark and Ireland. In addition, Commodore provides full treasury services for ICP, the #15 largest container lessor in the world, as ranked by AlphaLiner.