Connell FINANCE COMPANY, INC.

Investment Banking Group

The Investment Banking Group is an integrated unit formed from the previously separate lessor advisory, lessee advisory and lease syndication "desks" (each of which traces its history throughout the twenty-five years of Connell Finance Company, Inc. business). The unit is made up of individuals experienced in domestic and international finance, accounting, tax, legal, and business matters necessary to address the increasingly complex and technical nature of the financing requirements and investment profiles of our clients. The group’s transactions typically involve large-ticket asset based financings structured to satisfy specific accounting and/or tax requirements, to minimize financing cost or to maximize benefit to the borrower/lessee. The Investment Banking Group provides advisory services to both lessees and lessors, arranges for private equity and venture capital investments and arranges the private placement of debt and other securities. (All of the group’s securities offerings are placed through its NASD registered affiliate, Connell Securities LLC.) The unit’s energies are focused on arranging highly structured, asset based financings, domestic and cross border, fully funded and partially or fully defeased, leveraged and single investor, true leases, synthetic leases, project financings, and the private placement of limited or non-recourse debt.

Leasing
Both domestic and cross-border financings are structured to provide customers with financing for 100% of asset cost, favorable accounting treatment, and competitive cost while preserving operational flexibility. Defeased transactions are designed to provide customers with maximized up-front cash benefits. The group has invested in and advised customers on transactions utilizing a variety of structures including single investor and leveraged tax leases, a number of different variants of the synthetic lease structure (including those utilizing commercial paper conduits) and sale-leasebacks of real estate and other assets. Frequently, a goal of these financings is to maximize the accretive nature of these structures on corporate earnings relative to conventional on balance sheet debt financing.

Project Financing
In conjunction with Connell Securities, utilizing both recourse and non-recourse debt, the group has structured and arranged financing for projects ranging from power generating stations to commercial office buildings. These structures have often also involved underlying true tax leases, synthetic leases and sale-leasebacks. As pressure continues on companies to grow and acquire assets, alternative-financing structures such as project financings that minimize or eliminate corporate guarantees and result in reduced credit rating agency consequences will remain an attractive alternative to traditional debt financings.

Advisor to Lessee/Issuer
The unit’s financial advisory services have involved domestic and international clients in many different industries whose objectives have included achieving 100% financing, improving reported earnings, reallocating capital to higher return investments, receiving off-balance sheet accounting treatment, maximizing current use of tax benefits, maximizing up-front cash benefits and maintaining operational flexibility. The group is experienced in identifying and accessing the most attractive sources of capital and in guiding clients through the complex tax, accounting and regulatory issues necessary to secure it. In each case, the group provides customized financing strategies and creative transaction structures tailored to a client’s specific needs.

Advisor to Investor/Lender
The group, in conjunction with Connell Securities when appropriate, also works with investors and lenders to assist them in identifying investment opportunities and responding to a "bid" situation. Relying on the company’s knowledge of the ever-changing domestic and international market rates and terms and conditions, structuring, pricing, negotiating and documentation skills, and tax and accounting issues has proven valuable to a number of investors and lenders in bidding on transactions. Their clients have successfully bid on transactions using a variety of creative financial structures, both domestic and crossborder. The unit’s affiliations with their sister Asset Remarketing Group, as well as with Connell Technologies Company, experts in the unique attributes of high-technology equipment, enable them to offer their clients specialized assistance in understanding a wide range of assets (and their likely future value and utility) often giving additional comfort to their clients and allowing them to become even more competitive.

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