The goal of the CTN™ structure is to immunize the excess cash flow generated by a credit lease from exogenous factors that could interrupt or abate the gross rental stream from the underlying property.  Using proven techniques to mitigate prevalent "lease holes", Norseman is able to have its CTN™ perform as a bond-like equivalent and thereby provide borrowers with loan proceeds at a cost generally priced at a spread slightly above the unsecured public debt rating of the credit tenant.  In order to achieve such cost efficient lending, Norseman requires the following guidelines and qualifying lease criteria be adhered to:

Property Types		Any commercial property predominantly occupied by a credit tenant pursuant to a lease agreement.
Tenant Credit Rating		AAA-BB by Standard & Poor's.
Lease Criteria		Bond-Type or True NNN - all property level costs must be the responsibility of tenant. NN leases may be underwritten with appropriate guaranty from creditworthy party.
Loan Amounts		$4,000,000 and above.
Loan Term		Flexible, but no greater than the shorter of the senior mortgage or lease term.
Loan Amortization		Fully amortizing over the Loan Term with option to tailor schedule to rent escalations and other variables.
Coupon		From 50-700 bps spread over the average life SWAP (can substitute LIBOR and US Treasuries as benchmark).
Minimum DSCR		1:1 maximum on combined senior and mezzanine debt service after all property reserves and escrows.
Maximum LTV		Acquisitions - combined senior and mezzanine debt not to exceed purchase cost. Equity Take-Out - loan size determined solely by available excess cash flow.
Key Underwriting Requirements		Need Intercreditor Agreement with the senior lender. All rents must be directly deposited into Lockbox pursuant to a Cash Management Agreement.
Collateral		Pledge of partnership interests in the CTN™ borrower - a bankruptcy remote SPE that in turn is the sole owner of an SPE that owns the property and that is also the borrower under the senior loan agreement.
Norseman Fees		$25-$50 thousand application fee due at engagement to cover due diligence requirements. Application Fee is applied against expenses incurred at closing. Origination Fee of 3% of loan proceeds payable at closing.
Casualty and Condemnation		If lease can be terminated or rent abated as a result of either an event of casualty or a taking by eminent domain, then borrower must acquire lease enhancement insurance coverage.  See www.afisherco.com for further information.
Recourse to Borrower		Limited recourse, primarily Bad Boy Acts.
Closing Schedule		Approximately 30-45 days from engagement depending upon borrower, tenant, and senior lender timeliness.