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Program Fundamentals
Class Green, an SEC- and MSRB-registered municipal advisor:
- Offers municipal and state governments, not-for-profit entities, and corporations $10-100MM+ per transaction, potentially with zero or even negative net effective cost of capital or budget impact
- Uses as the underlying collateral existing or to-be-constructed city (or other entity)-owned or leased buildings (including office buildings, parking facilities, police and fire stations, schools, etc.), subject to new long-term city leases, with title reverting to the cities at the end of the lease
- Invests a portion of the proceeds in the environmental and operating performance of the assets, or other city buildings or infrastructure, decreasing the cities’ energy and operating costs, reducing carbon emissions, and improving employee health and productivity
Sample Transactions with Zero or Negative Net Cost of Capital or Budget Impact
- Green Monetization: A city (or other entity) sells certain owned properties to a governmental authority (or special-purpose entity) and “net leases” them back for 15-20 years, with a $1 repurchase option at the end of the lease. Class Green works with the authority or SPE to issue COPs or bonds, and with the city to retrofit the properties (or other city buildings or infrastructure). Half the proceeds are used for retrofits with an average payback period of 7 years or less, the other half for other capital or budget priorities the city may have.
- Green Reverse Privatization: Class Green works with a city (or other entity) to “lease-purchase” and improve certain buildings it currently leases, using tax-exempt COPs or bonds to fund the transaction. This structure replaces lease payments with lower COP or bond payments, and reduces the buildings’ operating costs through energy efficiency and other measures.
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