Since 1985, Orrick served as bond, underwriter's or special counsel in nearly 1,300 lease transactions totaling more than $65 billion. Orrick was counsel to the underwriters in connection with one of the largest multiple lease financings, the $760.8 million bankruptcy recovery financing for Orange County. These lease revenue bonds or certificates of participation have been used to finance such projects and programs as:
The leases or other agreements on which these financings were based have involved such features as:
Orrick has also worked with certain issuers to develop a lease financing program which avoids the need for a funded reserve fund, typical in most lease financing structures. We have also adapted a variety of clients' financing objectives to lease financing structures such as variable interest rates, tender and put option provisions, multi-interest rate modes, Marks-Roos pooling programs and even a College Savings Bond program targeted to a special investor group.
Because of the lack of specific legislation authorizing certificates of participation financing, Orrick has been active in drafting and lobbying legislation relating to property and sales tax exemptions, exceptions from requirements that a lease or other disposition of public property be conducted by competitive bid (and facilitating use of this financing device by counties, school districts and other entities), special exceptions to the lease remedies restriction in the statutes regulating commercial leases as well as in obtaining the basic ruling establishing exemption of interest represented by COPs from state income tax.
Orrick's real estate expertise and extensive knowledge of special federal securities laws (such as the Investment Company Act of 1940)--uncommon among bond counsel firms--has been crucial in the general development of this practice area and in completing a number of complex transactions.