Owners of net lease real estate can use the CTN structure to monetize underutilized cash flows through equity take out financing.  Norseman loan structure (rates) for investment grade tenants range 50-350 basis points above the average life swap rate for any loan term within the remaining lease term.  Often, property owners can monetize excess cash flows at spreads below 200 Basis points.  This means that CTN™ loans can be made at rates just slightly above corporate line spreads, but without balance sheet recourse.  This provides real estate CFO's with an attractive tool to raise capital without utilizing their existing corporate lines.  Such CTN™ loans can be configured as self-amortizing, or interest-only loans with a specified re-repayment date.

The CTN™ loan can also be used by real estate fund managers to pay investor distributions reflecting the value created by new credit tenant leases, without the need to sell the property to realize such.  Similarly, real estate developers can extract additional capital from completed properties leased to single credit tenants, and deploy the proceeds to new development projects.  Since the CTN™ is a passive instrument, implementation alongside existing senior mortgage debt is greatly facilitated.