Public Finance Securitization
Public Asset Securitization and Privatizations Sidley has one of the largest
securitization practices in the U.S. As a consequence, using the firm’s full complement of
securitization,
public finance,
bankruptcy and
tax experience, Sidley has participated in the creation of all of the major innovative securitizations originated by municipal entities. These "municipal securitizations" include the first tax lien securitization, the first utility "stranded cost" securitization, the first off-balance sheet financing for income tax assets and the first tobacco securitization.
In 1999 we acted as transaction counsel in the securitization of New York City’s share of the historic nationwide tobacco settlement. This innovative $709 million transaction, which closed in November of 1999, was the first ever securitization of this unique asset and received "Deal of the Year" status from the
Institutional Investor, the
Investment Dealer Digest and the
International Finance Review. We also represented TSASC, Inc., the bond issuer, in the IRS' informational audit of the bond issue, which has concluded with no adverse action being taken by the IRS.
Since the historic financing by the City of New York, we have been involved in tobacco securitizations for numerous states and local issuers, aggregating over $10 billion for more than twenty issuers.
In addition, Sidley has been involved in the securitizations of other public assets, ranging from tax receivables, to stranded costs, to Indian gaming compact revenues.
The firm is also a leader in the "privatization" of public assets. The firm has advised its state and local clients on the privatization of lotteries, airports and transportation facilities.
Sidley Updates
