Since 1977, we have been experts in providing financing solutions in the form of Real Estate Trust Preferred Securities (TRuPS)
Call us toll-free at 1-800-595-1474
Call Us...Toll Free!
5-Star Mobile Home Parks
Apartments
Apartment Buildings
Assisted living facilities
Auto repair garages
Boutique hotels
Car dealerships
Care facilities
Car wash facilities
Casinos
Church financing
Congregate care
Drugstores
Walgreens
CVS Pharmacies
Rite Aid
Energy
Ethanol plants
Factories
Factory outlets
Franchises
Gas stations
Golf courses
Grocery stores
Hospitality
Hotels
Housing developments
Independent living facilities
Industrial parks
Land acquisitions
Manufacturing facilities
Medical facilities
Medical offices
Mini storage
Mixed use
Mobile home parks
Movie theaters
Office buildings
Offices
Parking garages
Post Offices
Private schools
Raw land
Regional malls
Residential subdivisions
Resorts
Restaurants
Retail centers
RV parks
Senior housing
Shopping centers
Ski resorts
Special use buildings
Strip centers
Student housing
Tract development
Warehouse distribution centers
Warehouses
Wineries

 
 
 
 

REAL ESTATE TRUST
PREFERRED SECURITIES
(TRuPS)

 

Ocean Pacific Capital has been providing the best Commercial Real Estate financing for clients since 1977. We have extensive experience in providing financing solutions in the form of Real Estate Trust Preferred Securities (TRuPS). Real Estate Trust Preferred Securities or TRuPS for short are similar to debentures and preferreds that is generally longer term, has early redemption features, makes quarterly fixed interest payments, and matures at face value.

Trust preferreds have been created by companies for their favorable accounting treatments and flexibility. Specifically, these securities are taxed like debt obligations by the IRS, while having many characteristics of equities. They are recorded as debt in a company's accounting statements as according to GAAP procedures, but may be treated as capital for regulatory purposes.Because the interest paid to the trust is tax deductible, the company may enjoy a significantly lower cost of funding.

They offer many advantages over other funding choices including equity or secured/unsecured debt. They are cost effective and typically will improve ROE if used as a substitue for equity. Also the issuer can pick from a variety of pricing alternatives and have efficient execution time, with no marketing or SEC registration requirements.

Trust preferred securities (TRuPS) are cumulative preferred stock issued by bank holding companies through a special purpose vehicle. For the issuing bank holding company, TruPS combine benefits of both debt and equity.

The special purpose vehicle is wholly owned by the bank holding company and is usually a trust. It sells the TruPS to investors and uses the proceeds to purchase a subordinated note from the bank holding company. This becomes its sole asset, and cash flows from the note largely mirror the dividends payable on the TRuPS. The note has an initial maturity of at least 30 years. Dividends are paid quarterly or semi-annually. Dividends may be deferred for at least five years without creating an event of default or acceleration.

From a tax standpoint, TRuPS have a significant advantage over the direct issuance of preferred shares. This is because dividends on preferred shares are not deductible as a business expense, but interest on a subordinated note is. In this regard, the TRuPS behaves like debt. In another regard, it behaves like equity. In 1996, the Federal Reserve ruled that up to 25% of a bank holding companies tier 1 capital may comprise TRuPS or directly-issued preferred stock. In 2005, the Fed reaffirmed this treatment of TRuPS after FASB modified the accounting treatment of TRuPS under GAAP.

Initially, TRuPS were only issued by larger bank holding companies. This changed in 2000, when several institutions issued TRuPS, which were pooled in a CDO. Since then, the TRuPS CDO market has grown dramatically and has become a significant source of capital for small and medium sized bank holding companies. Contact one of our best TRuPS specialists today for a free consultation at 1-800-595-1474 or fill out a simple information request form.

 


Whatever your financing needs,
we will tailor a loan that's right for you.

 
 
 



Daily Oil & Gas and Wall Street Journal News
8/17/17

Nigeria State Oil Firm Says Its Production Costs Cut To $23 A Barrel
Posted on Tuesday August 15, 2017

Nigeria's production cost per barrel of crude oil is down to $23, the state oil company says.

Oil Slides Despite Steep Draw In US Crude Stocks
Posted on Tuesday August 15, 2017

Oil prices fell more than 1% even though US crude stockpiles declined by the most in a year.

Gadfly: Energy Transfer Offering Exposes Pipeline Parent Trap
Posted on Tuesday August 15, 2017

Investors gave a thumbs up to Energy Transfer Partners LP's decision to raise as much as $1.16 billion by issuing new units.

Ecuador's Esmeraldas Refinery In 'Critical' Situation Despite Overhaul
Posted on Tuesday August 15, 2017

The situation at Ecuador's state-run Esmeraldas refinery remains 'critical,' including problems with the catalytic cracking unit.

Trump Push for Natural Gas Exports Opposed by Manufacturers
Posted on Tuesday August 15, 2017

President Trump's effort to boost US energy is facing push back from manufacturers who say exporting more natural gas may undercut his 'America First' jobs focus.

IOC: Malaysia's Petronas Eyeing Stake In Indian LNG Import Terminal
Posted on Tuesday August 15, 2017

Petronas is looking to buy a stake in Indian Oil Corp's Ennore LNG import terminal, the Indian firm's chairman says.

Thai Oil Buys 1 Million Barrels North Sea Crude To Replace Mideast Oil
Posted on Tuesday August 15, 2017

Thai Oil PCL has bought 1 million barrels of North Sea Forties crude to be delivered in November

Woodside Sees Qatar Targeting New LNG Buyers With Supply Surge
Posted on Tuesday August 15, 2017

Woodside expects rival Qatar to target the emerging markets of India and Pakistan with a new wave of supply next decade and not cannibalize traditional Asian buyers.

Russian Watchdog Says Schlumberger-Eurasia Drilling Deal 'Has Big Problems'
Posted on Tuesday August 15, 2017

The acquisition of a 51% stake in Russia's EDC by Schlumberger 'has big problems' in the current political situation.

Saipem to Build Pipelines for Kuwait Refinery Project
Posted on Tuesday August 15, 2017

A unit of Kuwait Petroleum Corp. has awarded Saipem an approximately $850 million contract tied to KOC's Al Zour refinery project.

Wall Street Journal
Commercial News

8/17/17

WSJ.com: Commercial Real Estate

Shortage of Industrial Space on Long Island Squeezes Tenants
Long Island?s shrinking industrial space has placed expanding tenants in a tough spot, forcing them to look east to Suffolk County and off the island entirely, according to real-estate services firm JLL.

Supermarkets Face a Growing Problem: Too Much Space
A massive build-out by retailers has left the country piled up with grocery shelves as consumers shift from big weekly shopping trips to more snacking and to-go meals.

Excuse Me, You're Blocking My Sun
Australia?s rapid embrace of rooftop panels?now installed on one in four homes in some areas?has collided with another hot spot of investment, construction of apartments and homes.

1031 Exchange Real Estate Tax Break Faces Extinction
A much-loved tax advantage in the commercial real-estate industry is on the chopping block even as chances dim for the passage of a broad federal tax overhaul this year.

Mall Tenants Play Hardball In Lease Negotiations
Retailers, food and beverage operators and department store chains looking to renew their leases have been asking for more allowances from mall owners.

Mall Project Denied on Former Shea Stadium Site
New York?s highest court on Tuesday blocked the development of a billion-dollar shopping mall on a Citi Field parking lot in Queens, affirming a ruling that the project needs legislative approval to proceed.

New Jersey Landlords Sweeten Perks With Ride-Hailing Subsidies
Food trucks and fitness centers are among the amenities that New Jersey office landlords have been using to attract tenants.The latest perk: Subsidies for digital ride-hailing services such as Uber and Lyft.

BRE #:00619059
Charles Elfsten, President
Charles A. Elfsten
Top| Contact| Privacy| Licensing| Site Map| Resources
DESIGNED AND
POWERED BY

Ocean Pacific Capital