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Highlights in Our History

Carlyle Capital Markets Inc. (CCMI) is a financial services company specializing in municipal leasing, project financing and financial services for alternative energy projects.  Founded in 1982, CCMI was the first firm to provide financing for appropriation debt utilizing capital leases that occurred as a result of California’s Proposition 13, which capped the amount the State could tax on real property.  CCMI has extensive experience in financing both tax-exempt and taxable transactions utilizing capital leases for projects and equipment for over 400 state and local governments, cities and counties,  in addition to school districts, community and junior colleges, universities, Department of Energy National Laboratories, and other Federal Agencies.  CCMI is credited with pioneering many financing structures during the past three decades, including the master lease program used by government agencies throughout the country, lease lines of credit, contract revenue obligations, lease revenue bonds, and limited tax obligations. 

CCMI’s affiliate Broker and Municipal Advisor, Friedman, Luzzatto & Co. (FLCO), was incorporated in the State of Texas in 1986.  FLCO is a FINRA-Registered Broker (since 1986), a SIPC member (since 1989), and a Registered Municipal Advisor (since 2010).  Together, the two firms have a portfolio of more than $25 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 25 years.  The firm’s experience in the energy area began with financing of energy efficiency equipment and projects.  Today, in addition to financing equipment and energy efficiency projects, CCMI provides financial services for alternative energy projects, ranging from wind, solar, biomass, biofuels and landfill gas to electricity.

The firms’ 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.



1985

CCMI developed a tax-exempt lease-purchase financing, using Lease Revenue Certificates of Participation, through which Reeves County, Texas constructed a new 528-bed Justice and Juvenile Detention Center. This was the first prison facility in the State of Texas financed through a lease-purchase structure. 

1986

Engineering News-Record nominated CCMI’s 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.  

The Tax Reform Act of 1986 eliminated Tax Benefit Transfers (TBTs) which allowed transit authorities the opportunity to earn multi-millions of dollars by selling to investors the depreciation on their mass-commuting vehicles.  Prior to the elimination of TBTs, CCMI became recognized as a national leader in the structuring of “safe harbor” leasing arrangements which permitted investors to purchase the depreciation.  CCMI put together safe harbor packages for municipal transit authorities in San Antonio, San Francisco, Los Angeles and Washington D.C. as well as other cities.  CCMI later served as broker on three Dallas Area Rapid Transit (DART) safe harbor deals bringing the transit authority together with investors.  From 1983 through 1987, CCMI closed 100 TBT transactions ranging from $200,000 to $19 million, representing approximately 30 transit authorities.                              

In 1986 CCMI  provided the first lease sublease transaction of real property in Texas by a home-rule city for the City of Austin, Texas.  The financing allowed the city to construct a $23,000,000 office complex.

CCMI provided financing for the construction of a $9.1 million telecommunications 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 provided 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 , a Department of Energy laboratory.             

Texas Governor William Clements appointed CCMI’s President, Barry Friedman, to the Select Interim Committee on Capital Construction of Texas. The Committee developed a financing program for public facilities in Texas which was based on CCMI’s lease-purchase financing structure for Reeves County, Texas and subsequently adopted by the Governor and Legislature.

1988

FLCO served as co-manager for the Texas Correctional Facilities Financing Corporation’s $26,425,000 fixed/adjustable rate revenue bond financing for Liberty and Johnson Counties pre-release Center projects.

1989

CCMI arranged financing for the State of Illinois for a $27,010,000 statewide integrated communication network. 

The 1990’s
1990

The Security & Exchange Commission (SEC) issued a “no-action” letter to CCMI under Rule 15c2-12 stating that so long as CCMI clearly states in its initial bid to a governmental issuer that it intends to offer publicly offered Certificates of Participation, 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 lease transactions to the public markets.

CCMI pioneered the original Master Lease Program utilizing Certificates of Participation 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, 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-.  CCMI and FLCO structured, underwrote, or provided financial advisory services on more than $700 million in financings.

CCMI provided financing in the amount of $9,180,000 for the State of Texas telecom system on behalf of the University of Texas Medical Branch, a component of the University of Texas System located in Galveston, Texas.

CCMI served as lessor for $23,100,000 in financing for Louisiana State University and Agricultural and Mechanical College for the construction and installation of an Energy Management Project.

1994

CCMI served as lessor for the Board of Public Utilities of the City of Springfield, Missouri to refinance a lease purchase agreement dated December 27,1990 in the amount of $14,000,000.  The original lease was for the acquisition of a GE gas combustion turbine generator for City Utilities.  FLCO was Co-Manager for the transaction.

Regents of the University of California at Los Alamos National Laboratory entered into a Lease Purchase Agreement with CCMI to finance a $40 million state-of-the-art integrated communications system installed by U.S. West Communications Federal Services, Inc.  FLCO was Placement Agent for the Certificates of Participation.

1996

FLCO established a relationship with the State of Texas on behalf of the Texas Public Finance Authority beginning in 1996.  In January, FLCO served as Co-Manager for the Authority’s $56,055,000 Series 1996A Building Revenue Bonds and the Series 1996B Special Revenue Bonds.  In November,  FLCO served as Co-Financial Advisor for the Authority’s $82,505,000 General Obligation and Refunding Bonds, Series 1996C bonds. 

FLCO served as Co-Financial Advisor for the $160 million State of Missouri General Obligation Bonds Series 1996A.

1997

CCMI served as lessor and FLCO served as placement agent for the $23 million Equipment Revenue Bond Series A of 1997 financing for the Philadelphia Municipal Authority.  The financing was for the acquisition of capital equipment to be  leased to the City of Philadelphia for use by the Philadelphia Gas Works Municipal Authority.

FLCO was Placement Agent for $29,475,000 of Taxable Revenue Beneficial Interest Certificates to finance a juvenile detention center for the Louisiana Department of Public Safety and Corrections.

FLCO served as Co-Financial Advisor for the Texas Public Finance Authority’s $40,900,000 Series 1997 Building Revenue Bonds.

The State of Mississippi entered into a Lease Purchase Agreement on September 4, 1997 with CCMI to finance the acquisition of a $3,215,000 five-story building in downtown Jackson, Mississippi.  The facility includes a class “A” business office building containing 47,282 square feet of gross area situated upon 32,000 square feet of land and is located in the Central Business District.  The District is in the immediate vicinity of business and governmental office properties, including many offices of State agencies.  The State occupies the entire building with the Department of Environmental Quality renting most of the space.

1998

FLCO was Financial Advisor to the State of Mississippi for a $200,000,000 General Obligation Notes Four-Lane Highway Program Issue, Series 1998.

The City of Kansas City, Missouri entered into a Master Lease Agreement with CCMI in 1998 for the acquisition of real property.    On July 16, 1998 CCMI provided financing in the amount of $1,300,000 to acquire a 32,000 square foot building and 2.64 acres of land.  The facility is used by the Kansas City Police Department as its Regional Crime Laboratory. The facility allowed the Police Department to improve the collection and processing of forensic evidence warranted by the judicial requirements that modern technologies be utilized in the laboratory and demands for these technologies by investigators, prosecutors, and citizens.

FLCO was Placement Agent for $32,995,000 of Taxable Revenue Beneficial Interest Certificates to assist the state of Louisiana acquire a correctional facility for the Louisiana Department of Public Safety and Corrections.
                                 
CCMI provided financing of an additional $2,010,000 to the City of Kansas City, Missouri on April 29, 1999 to acquire and improve a second building for lease-purchase by the City.  This facility includes a 55,550 square feet four story building and parking garage.  Two city departments and one state agency occupy the facility.

1999

FLCO was Financial Advisor to the State of Mississippi in a $200 million transaction for the first competitive sale and the fourth transaction ever of Grant Anticipation Revenue Vehicle (GARVEE) Bonds. With FLCO’s assistance with presentations to the rating agencies, 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.   Among other duties, FLCO assisted in rewriting enabling legislation, created inter-agency intercept agreements and analyzed gasoline consumption and tax collections for the State highway program. 

FLCO was Placement Agent for $7,500,000 of privately placed Lease Revenue Bonds to finance a correctional facility in Louisiana for Claiborne Parish Law Enforcement District.

CCMI refunded the outstanding balance of $20 million for a Lease Purchase Agreement for a state-of-the-art integrated communications system installed at Regents of the University of California at Los Alamos National Laboratory.  FLCO was Placement Agent for the Certificates of Participation.

The 2000’s
2000

In a one-of-a-kind lease-purchase financing structure, CCMI, as lessor, entered into a Lease Purchase Agreement, dated June 29, 2000, for the construction of the one-mile Martin Luther King Parkway in Sierra Vista, Arizona.  FLCO, as Placement Agent, privately placed Certificates of Participation in the amount of $4.24 million.  The Parkway remains one of the only highway systems in the United States successfully financed utilizing a lease-purchase structure.  

FLCO served as Placement Agent for a lease-purchase transaction utilizing $17.2 million Massachusetts Health and Educational Facilities Revenue Bonds, East Concord Medical Foundation Issue, Series A to fund the construction of a 250,000-square foot parking garage with office/retail space in Boston, Massachusetts. East Concord Medical Foundation, Inc. was a partnership of Boston Medical Center Corporation and Boston University.  CCMI was lessor and the Massachusetts Health and Educational Facilities Authority was the issuer, on behalf of the Boston Medical Center Corporation and Boston University.  East Concord Medical Foundation, Inc., a tax-exempt Massachusetts corporation associated with Boston Medical Center Corporation and the Trustees of Boston University, was the lessee.

CCMI was Lessor and FLCO was Placement Agent for $6,630,000 of privately placed Certificates of Participation to finance energy efficiency equipment for Jefferson Parish, Louisiana.

2001

The State of Kansas and CCMI entered into a Master Lease Agreement dated February 1, 2001 for the lease purchase financing of energy efficiency equipment for various Facility Conservation Improvement Projects. 

Series 2001 Taxable Additional Revenue Certificates of Participation on behalf of Reeves County, Texas in the amount of $53,785,000 were executed and delivered on May 29, 2001, by and between Carlyle Capital Markets Inc. (CCMI), as lessor and Chase Manhattan Trust Company, as trustee.  The proceeds of the Certificates were used to provide funds to finance the 2001 expansion of the Reeves County Detention Center.  The expansion project consisted of acquiring, designing, constructing and equipping a 960-bed expansion and to finance the costs of renovating and equipping the existing RCDC facility.  The expansion made the 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 Additional Revenue Certificates of Participation used in this financing.

FLCO was Placement Agent for a $16,424,194 privately placed COP transaction to refund a prior issue and provide new funds for rolling stock for the City of New Orleans, Louisiana.

Regents of the University of California at Los Alamos National Laboratory entered into a Lease Purchase Agreement with CCMI to finance $1 million of new computer equipment and refinance nearly $7 million of previously leased equipment.  FLCO was Placement Agent for the Certificates of Participation.

2002

FLCO was ranked number one in the State of Mississippi as Financial Advisor, with four transactions totaling $442,475,000.

CCMI developed legislation for the State of Mississippi to support the creation of an in-state ethanol industry through direct monetary payments to ethanol producers, subject to annual appropriation.  The legislation was signed by Governor Musgrove on July 15, 2002.

2003

CCMI developed the Master Facilitator Program for the State of North Carolina. CCMI assisted the North Carolina State Board of Education in drafting legislation which would allow the Board to intercept funds allocated to the school districts by the General Assembly to pay the Installment Payments required by the Financing Agreement.  The intercept mechanism – the first the State had used in a master lease program for school districts – allowed school districts to lower their interest rate by leveraging the State’s credit rating.  Through the use of the State’s Intercept Program, 58 individual school districts simultaneously financed $18,659,772 in school bus replacements.  FLCO served as Placement Agent for the tax-exempt privately placed Certificates of Participation.

CCMI entered into a Lease Purchase Agreement dated March 3, 2003 with the State of Kansas for the lease purchase financing of certain Kansas State University Facility Conservation Improvement Projects.  The Projects consist of lighting, HVAC, plumbing and mechanical retrofits in the Derby Complex, Kramer Complex, Strong Complex, Pittman Building and Davenport Building.  The aggregate amount financed for the Projects was $2,495,161.59.

CCMI developed for the State of Louisiana through the Louisiana State University Health Sciences Center, the first Master Lease Program for the acquisition of medical equipment.  The State’s nine public hospitals purchased over $30 million in medical equipment.  FLCO was Placement Agent for the Certificates of Participation.   

CCMI not only provided the financing, but constructed a 22MW electrical generation “peaker” power project at the Regents of the University of California Los Alamos National Laboratory through its Assignee, CCMI Power, LLC., a special purpose entity formed by CCMI. The project provided the “peak” power required during periods of high electrical usage. CCMI structured $14 million of taxable revenue bonds underwritten by FLCO and supported by the operating lease through the Regents of the University of California.  CCMI entered into an operating lease to alleviate budget constraints of the lab.  The Regents of the University of California at Los Alamos National Laboratory purchased the power plant at the end of the operating lease for Fair Market Value.

CCMI’s experience in biofuels led to CCMI’s CEO Barry Friedman’s appointment to the State of California Energy Commission Resource Group, on which he served from 2003 to 2006. CCMI was the only financial services company to be a part of this key policy-drafting agency.  The Resource Group was responsible for drafting ethanol policy for the state Legislature. 

2004 Southern Arkansas University and CCMI entered into a Lease Purchase Agreement dated March 31, 2004 in the amount of $1,465,000 for the University’s district heating project.  The project included design fees, energy efficient equipment and systems and construction costs.
2006 CCMI structured a lease-purchase financing in the amount of $6,194,679 for the acquisition of a computer operating system for Regents of the University of California at Los Alamos National Laboratory.  Since 1987, CCMI has provided financing for more than $167 million of lease-purchase transactions for Los Alamos National Laboratory.  
2010

FLCO underwrote $19,680,000 Taxable Additional Revenue Certificates of Participation Series 2010 for Reeves County, Texas in order to provide funds to finance a portion of the costs of designing, reconstructing, equipping and renovating certain portions of the Reeves County Detention Center. Two disturbances at the  Detention Center - the first occurring on December 12, 2008, and the second on January 31, 2009, left the facility with major damage. Damage to the facilities warranted reconstruction and upgrades to the three buildings comprising the Detention Center. CCMI oversaw the reconstruction. The section of the damaged facility was brought back online in less than twelve (12) months.

FLCO underwrote $37,995,000 Taxable Revenue Refunding Certificates of Participation Series 2010A for Reeves County, Texas in order to provide funds to refund the Series 2005 Taxable Additional Revenue Certificates of Participation, the Series 1999 Taxable Additional Revenue Certificates of Participation and the 2001B Taxable Additional Revenue Certificates of Participation.  The issues were originally sold to provide funds to construct the 1999 and 2001 Reeves County Detention Center expansions.
                                   
FLCO provided advisory services for the $116 million project financing of a bio-based succinic acid facility in Lake Providence, Louisiana, for Myriant Lake Providence Inc., a wholly owned subsidiary of Myriant Technologies, Inc. The project financing included $25 million in corporate bonds enhanced by a USDA Loan Guarantee, a $50 million Department of Energy (DOE) Grant, $10 million New Market Tax Credit equity financing and a $10 million grant provided by the Lake Providence Port Commission. The overall project financing was the first to combine a USDA loan guarantee and New Market Tax Credits. 
                                                                                               
CCMI was engaged by Tang Energy as consultant on the $136,880,000 Flat Water Wind Farm Project located in Richardson County, Nebraska and Nemaha County, Kansas. The Project is a wind-powered generation facility with a generating capacity of 60 MW.  Flat Water Wind Farm, LLC, entered into a Renewable Energy Purchase (REP) Agreement with Omaha Public Power District on August 14, 2009 for the purchase of the energy output.  CCMI assisted in negotiating all key documents of the project including the REP Agreement from Omaha Power Public District, the Interconnection Agreement and the EPC Contract between Res Americas and Flat Water Wind Farm.  The project qualified for New Market Tax Credits (NMTC) and Production Tax Credits (PTC) as well as a USDA Loan Guarantee.
                       
Regents of the University of California at Los Alamos National Laboratory  entered into a Lease Purchase Agreement with CCMI to finance $1,104,495 of new computer equipmentat. FLCO was Placement Agent for the Collateralized Trust Receipts.

2012 The Mississippi Development Authority (MDA) engaged FLCO on October 22, 2012, as the Financial Advisor for its Energy Efficiency Lease Program to provide public and private non-profit entities with lease purchase financing for energy efficiency projects. Entities eligible to participate in the Program include cities, counties, universities, community colleges, public hospitals, private non-profit hospitals, state agencies, local governing authorities and school districts.
2013

FLCO was Co-Underwriter for the Mission Economic Development Corporation Taxable Power Purchase Agreement Revenue Bonds in the amount of $8,680,000 for the Nelson Gardens Energy, LLC Project. The project involved the development, engineering, design, permitting and construction of a landfill gas-to-electricity facility located at the Nelson Gardens Landfill in the City of San Antonio, Texas.  The electricity produced by the facility is being sold to CPS, a city owned utility.  The Nelson Gardens Project is one of the few bond issues for a landfill gas-to-electricity facility in the United States. 

CCMI was engaged to provide consulting services for two large scale solar projects located in North Carolina.  The project costs totaled $159,000,000 for a 100 MW solar farm supported by a 15 year Power Purchase Agreement (PPA) from Duke Energy and $142,000,000 for a 90 MW solar farm supported by a 10 year PPA from Duke Energy.  The 100 MW solar project is the largest solar project east of the Rocky Mountains.  The projects qualified for a 30% Federal Investment Tax Credit (ITC) and a 35% state ITC. 

FLCO was Placement Agent for a $3,435,000 Hotel Occupancy Venue Tax Revenue Bond, Series 2013 for Reeves County, Texas in order to provide funds for the renovation of the Reeves County Civic Center and related infrastructure of the Buck Jackson Rodeo Arena.

FLCO was placement agent for Jefferson Parish, Louisiana to refund an energy efficiency lease purchase agreement. FLCO analyzed the lease and the current market environment to determine that the Parish would experience significant savings by refinancing.  CCMI was lessor on the transaction and the Parish saved $375,000 or 11% of the outstanding balance.

In 2013, under the Mississippi Development Authority’s (MDA) Energy Efficiency Lease Program, FLCO was Financial Advisor for four (4) Tax-Exempt Lease-Purchase Agreements or refinancings for the City of Jackson, Washington County, Pearl River School District and City of Crystal Springs.  

2014

FLCO was Financial Advisor for a $4,500,000 Certificates of Obligation Series 2014 for Reeves County, Texas in order to provide funds to construct, renovate, rehabilitate, and improve the Reeves County jail and office annex building. 

On April 24, 2014, CCMI was awarded by the Regents of the University of California at Lawrence Berkeley National Laboratory, a DOE laboratory, an $80,000,000 lease-purchase financing for the acquisition of a Cray computing system. 
                       
FLCO’s President Barry Friedman was appointed to serve on the Fort Worth Better Buildings Advisory Committee (“FWBBAC”).  The FWBBAC is working to develop the Property Assessed Clean Energy (“PACE”) program for the city.  The PACE statute, SB 385, authorizes municipalities and counties in Texas to work with private sector lenders and property owners to finance qualified improvements (water conservation, energy-efficiency improvements, and renewable retrofits) using contractual assessments imposed on the property.  Improvements financed through PACE generate energy savings upon completion with no up-front, out-of-pocket cost to the property owner.

In 2014, under the Mississippi Development Authority’s (MDA) Energy Efficiency Lease Program, FLCO was Financial Advisor for three (3) Tax-Exempt Lease-Purchases Agreements for the City of Gautier, City of Grenada and Marshall County School District.

2015

As of January 2015, Barry Friedman, CEO of CCMI, was elected Secretary of the US Green Building Council North Texas Chapter Board of Directors.  Mr. Friedman was originally appointed an advisory role to the US Green Building Council North Texas Chapter Board of Directors in April 2011.
                       
FLCO is the Financial Advisor for the Port Cameron, LLC (Port Cameron) project in Cameron Parish, Louisiana.  Port Cameron is a greenfield 500 acre private port development project targeting the gulf coast oil and gas companies and oilfield services companies.  The project will be constructed in four separate phases requiring four separate taxable municipal bond issues totaling an estimated $1.6 billion. 

In 2015, under the Mississippi Development Authority’s (MDA) Energy Efficiency Lease Program, FLCO was Financial Advisor for three (3) Tax-Exempt Lease-Purchases Agreements for the City of Moss Point, City of Tupelo and Perry County School District.

2016

CCMI is a member of the Council of Development Finance Agencies.  In 2016, Barry Friedman became a member of the CDFA Texas Advisory Committee.

FLCO provided consulting services to Legacy Willow Bend for the New Hope Cultural Education Facilities Finance Corporation Retirement Facility Revenue Bonds (Legacy at Willow Bend Project) Series 2016 in the amount of $51,015,000. 

 

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