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How Credits Become Capital: When and How to Syndicate June 5, 2008
Jo Ann ClippSenior Manager
410-783-6232
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Reznick Group Building Business Value
THE DEAL Structure Equity Guarantees Cash Flow Profits & Losses Investor Exit Options
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Reznick Group Building Business Value
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Reznick Group Building Business Value
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Reznick Group Building Business Value
EQUITY
•Pricing•Pay-in Schedule•Adjusters
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Reznick Group Building Business Value
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Reznick Group Building Business Value
GUARANTEES
Construction Completion Against Recapture or Disallowance of
Credit Operating Deficits Exit Obligations
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Reznick Group Building Business Value
CASH FLOW
Preferred Return Asset Management Fee Tax Preference Profit Motive
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Reznick Group Building Business Value
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Reznick Group Building Business Value
PROFITS & LOSSES
Profits - Tax Credit Investor 99.99% Owner
Losses - Depreciable Basis Reduced by Amount of Credit
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Reznick Group Building Business Value
INVESTOR EXIT OPTIONS Put
•Timing •Percentage of Capital•Investor’s Exit Tax
Call•Timing•Fair Market Value
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Reznick Group Building Business Value