Carlyle Capital Markets, Inc.

Highlights in Our History

CCMI is a financial services company specializing in municipal leasing, project financing, and financial consulting for alternative energy projects. Founded in 1982, it is the oldest corporate lessor in the municipal leasing market and is credited with pioneering many financing structures during the past three decades, including the master lease program used by government agencies throughout the country.

CCMI’s broker/dealer affiliate, Friedman, Luzzatto & Co. (FLCO), a member of SIPC and FINRA, was founded in 1986. Together, the two firms have a portfolio of more than $15 billion in completed transactions and have served more than 400 states, cities, counties, school districts, university systems, community colleges, transit and port authorities, federal government agencies, private entities, and not-for-profit organizations nationwide.

CCMI has been involved in the financing of energy related projects for more than 20 years. The firm’s experience in energy began with the financing of energy efficiency equipment and projects and has progressed to a specialty today in providing financial consulting services for alternative energy projects, ranging from wind and solar to biomass and biofuels.

The firm’s notable history of project and equipment financing illustrates both its attention to detail and its ability to optimize financial structures that bring taxable and tax-exempt municipal securities to the marketplace at the lowest interest rate for its clients.

The 1980’s
1985	CCMI structured a tax-exempt lease-purchase financing, using Lease Revenue Certificates of Participation, through which Reeves County, TX constructed a prison facility. This was the first prison facility in the State of Texas financed through a lease-purchase structure.
1986	Engineering News-Record nominated CCMI President Barry Friedman for Construction’s “Man of the Year Award” in recognition of CCMI’s work in mapping out the financial framework that facilitated the construction of the Reeves County prison facility. Prior to the elimination of Tax Benefit Transfers (TBTs) in 1986, CCMI successfully structured nearly 100 TBTs for approximately 30 transit authorities, including Dallas, San Antonio, San Francisco, Los Angeles, and Washington DC. CCMI structured the first lease-sublease transaction of real property in Texas by a home-rule city for Austin, Texas. This innovative financing allowed the city to construct a $23 million office complex. CCMI provided turnkey build finance for the construction of a $9.1 million telecommunications system facility for the State of New Jersey that represented the first time the State financed a real property transaction using a lease-leaseback structure.
1987	CCMI developed the State of Maryland’s first Master Lease Program for equipment procurement, financing state agencies’ acquisition of $6 million of computer equipment. CCMI structured a lease-purchase financing for the acquisition of $65 million in supercomputers by the Regents of the University of California at Los Alamos National Laboratory, which is a Department of Energy laboratory. CCMI has structured more than $167 million of lease-purchase transactions for Los Alamos National Laboratory over the course of a 20-plus year relationship. Texas Governor William Clements appointed CCMI President Barry Friedman to the Select Interim Committee on Capital Construction of Texas. The Committee developed a financing program for public capital facilities in Texas which was based on CCMI’s lease-purchase financing structure for Reeves County and subsequently adopted by the Governor and Legislature.
The 1990’s
1990	The SEC issued a “no action” letter to CCMI under Rule 15c2-12 stating that as long as CCMI clearly states that it intends to offer publicly offered Certificates of Participation in its initial bid to a governmental issuer, CCMI can serve as the issuer’s agent and deem the official statement nearly final. This letter ultimately paved the way for CCMI to efficiently bring capital leasing transactions to the public markets. CCMI pioneered the original Master Lease Program for the State of Mississippi Institutions of Higher Learning, which was heralded as a major achievement for the State. In 1992, 2001, and 2002, similar programs were implemented for Mississippi’s state agencies, independent school districts, and community and junior colleges, respectively. Institutions of the State of Mississippi now participate in one of the most sophisticated aggregate leasing programs in the country, with the Master Lease Program maintaining a Standard and Poor’s underlying rating of “AA-“ since 2002. CCMI and FLCO have structured, underwritten, or provided financial advisory services on more than $700 million in financings since the program’s inception.
1999	FLCO acted as financial advisor to the State of Mississippi in the first competitive sale of Grant Anticipation Revenue Vehicle (GARVEE) Bonds. With FLCO’s assistance, the State was able to obtain the highest rating to date (AAA by Fitch and S&P, Aa1 by Moody’s) for an issuance of GARVEE Bonds in this $200 million transaction.
The 2000’s
2000	In a one-of-a-kind lease-purchase financing structure, CCMI acted as lessor and FLCO acted as placement agent for the construction of the one-mile Martin Luther King Parkway in Sierra Vista, Arizona through $4.24 million in privately placed Certificates of Participation. The Parkway remains one of the only highway systems in the United States successfully financed via a lease-purchase structure. FLCO served as placement agent for a lease-purchase transaction using $17.2 million in tax-exempt revenue bonds to fund the construction of a 250,000-square foot parking garage with office/retail space in Boston, MA, with East Concord Medical Foundation, Inc. (a partnership of Boston Medical Center Corporation and Boston University) acting as lessor and Massachusetts Health and Educational Facilities Authority as the issuer.
2002	CCMI structured a Master Lease Program for the State of Mississippi using approximately $5 million in Lease Revenue Certificates of Participation which were competitively sold by FLCO, the State’s financial advisor. The Master Lease Program enabled the State’s community and junior colleges to launch energy efficiency projects on four of the State’s campuses.
2003	FLCO privately placed $18 million in Certificates of Participation after CCMI structured a Master Facilitator Agreement for the State of North Carolina that allowed 58 different school districts to simultaneously finance the acquisition of school buses. As a result of CCMI’s inclusion of an “intercept” mechanism – the first the State had used in a master lease program for school districts – school districts were able to lower their costs by leveraging the State’s credit rating. In the first medical equipment lease financing for the State of Louisiana through Louisiana State University Health Sciences Center, CCMI structured a Master Lease Program for the acquisition of $30 million in medical equipment by the State’s nine public hospitals. FLCO acted as placement agent for the Certificates of Participation. CCMI not only provided the financing, but also provided for the construction of a 22MW electrical generation power project at the U.S. Department of Energy’s Los Alamos National Laboratory through its Assignee, CCMI Power, LLC. CCMI provided for the acquisition of generating equipment; the construction of the plant and installation of the equipment through a subcontractor; and the acquisition of comprehensive maintenance services for the project. The project was designed to provide the “peak” power required during periods of high electrical usage. In addition to providing for the construction of the project, CCMI structured $14 million of taxable revenue bonds underwritten by FLCO and supported by an operating lease through the Regents of the University of California as prime contractor for the Department of Energy. CCMI President Barry Friedman was appointed to the State of California Energy Commission Resource Group, on which he served until 2006. CCMI was one of the only financial services companies to be a part of this key policy-drafting agency.
2010	Since 1985, CCMI has structured multiple financings totaling $170 million on behalf of Reeves County, Texas, which have made Reeves County Detention Center—located in a community of less than 12,000 people—one of the nation’s largest prison facilities housing federal inmates. FLCO provided underwriting for the taxable Lease Revenue Certificates of Participation used in these financings.

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