Partner

Daniel J. Favero

Real Estate, Banking & Finance, Corporate & Securities

Overview

Insurance companies, institutional investors and other market participants turn to Daniel Favero for advice on their most complex domestic and cross-border private placement transactions and other financings, including:

Real estate lease financings
Credit tenant loans
Ground lease financings
Construction financings
Project finance
Senior, subordinate and mezzanine financings
Certified capital company (CAPCO) transactions
Other tax credit financings, including new market tax credits
Vessel financings
Energy as a service financings

Investors, investment bankers, placement agents and mortgage brokers and other transaction sponsors also frequently rely on Daniel to structure transactions for compliance with NAIC Guidelines and to satisfy investor expectations and needs.

Experience

Approximately $64 million construction financing for a major healthcare provider in the Northwest United States for development of a medical office building, parking garage, atrium and retail space connected to a hospital and ambulatory care facility. The financing involved the use of a two-tier collateral structure consisting of real estate, an assignment of the mortgagee's interest in the real estate and a pledge of the equity interest in the borrowing entity.
$111 million construction financing of a hospital, garage and medical office building complex for St. Luke's Episcopal Health System Corporation. The financing is secured by a letter of credit, is interest-only during construction and is structured to qualify as a credit tenant loan and shall commence amortization after construction is completed. The transaction was structured with two cross-defaulted tranches of notes: one secured by the hospital alone, the other secured by the hospital and the medical office building.

$21 million financing secured by air rights containing an office building over rail tracks at Union Station in downtown Chicago. The loan was issued in two tranches: one interest-only tranche is serviced by lease rentals and one payment-in-kind tranche is serviced with interest capitalized as principal. Additional subordinated debt is permitted, assuming certain loan-to-value and other requirements are met.
$375 million credit tenant loan to the Republic of Trinidad and Tobago to finance the Port of Spain International Waterfront Development project located in the downtown area of the capital city, Port of Spain. The waterfront development is to include hotel, office, retail, conference and parking areas. The funding will be via four separate takedowns, and construction completion will be backstopped by a performance bond from a UK company, a construction guaranty from a French company and an undertaking by the government of Trinidad and Tobago.
Financing of two charter schools in New York State. The structure included mortgages on the schools, an assignment of the leases, residual value insurance to cover the balloon at maturity and letters of credit to cover rentals due after expiration of the current state charter for the schools.
$300 million 144A real estate lease financing of a bank headquarters that involved certain innovative features, including no mortgage on the fee interest and accounting recognition by the borrower of a sale of a financial asset while retaining ownership in the project.
Financing of electric generating, fuel delivery and compressed air and steam production equipment for major food processors for processing plants located in the United States and Belgium by monetization of cashflows under energy services and utility requirements agreements.
Multiple-property real estate construction financing for a Chicago shopping center involving cash escrow, completion bonds and assignment of construction contracts as security during construction, a loan amount true-up feature and conversion to a Schedule D-eligible credit tenant loan after construction completion.
Multiple-property credit tenant lease transaction involving a master lease-sublease structure with a mortgage on the fee and the leasehold estates, a guaranty of the master lease by the sublessee and a guaranty of the sublease by the parent and other affiliates of the sublessee.
Development of a Sharia-compliant (i.e., compliant with Islamic law, which prohibits charging or paying interest) real estate lease financing structure.
Certified Capital Company (CAPCO) transaction involving issuance of debt and equity securities.

Related Services & Industries

Services

Industries

Publications & Presentations

Events
View All Events
- Mayer Brown CLE/CPD Event
  REVERSEinquiries Workshop: NAIC-related Developments for the Structured Investments Community
  December 16, 2020

Education

DePaul University College of Law, JD, summa cum laude
Law Review
University of Illinois at Springfield (Sangamon State University), BA

Admissions

Illinois

Languages

English

Professional & Community Involvement

American College of Investment Counsel