Big Ticket Equipment Financing

Our experienced team works with clients to deliver a suite of specialized services that are tailored to maximize the efforts of active investors in physical (non-real estate) asset portfolios, which either individually or collectively, often amount to hundreds of millions, if not billions of dollars. These Big Ticket assets range from aircraft and shipping vessels to other transportation-related assets such as railcars and shipping containers, where individual portfolio sizes frequently number from the tens of-thousands into the millions. We also work extensively with telecommunication network infrastructure and multi-million dollar healthcare diagnostic imaging equipment.

Because these assets are typically monetized via either lease, loan, securitization or other financial and contractual constructs, Hilco, works closely with our clients to address:

• Strategic and compliance based valuation needs
• Collateral assessments
• Complex structuring considerations
• Strategic alternative analyses
• Change in control
• Sale leaseback transactions
• Accounting impairment

VALUATION

We provide valuation of these Big Ticket investments across the entire capital structure to help clients navigate the inherent fair value challenges associated with both single investments as well as entire portfolios of assets, which are subject to investor, as well as on-balance sheet asset reporting requirements including:

• Common and preferred equity
• Debt securities, including senior and subordinated, secured and unsecured, performing and distressed
• Big Ticket-backed structured products including ABS, ETC (equipment trust certificates), EETC (enhanced ETCs),
• Loan pools
• Underlying unencumbered asset
• Intangible assets, including fair market rents, off-market contracts, maintenance use right assets, customer relationships, and tradenames

STRATEGY & STRUCTURING

We provide advisory support to clients as they contemplate their strategic options, portfolio diversification, as well as their FP&A procedures:

• Pricing, credit, utilization, and residual outcome scenarios
• Exit scenario planning such a re-lease, sell, or liquidate
• Liquidation scenarios such sell intact, componentize, or part-out
• Depreciation and interest tax shield scenarios
• Asset maintenance and scrapping ventures
• Macroeconomic, commodity, and regulatory outcome scenarios
• Securitization structures