Securitization & Derivative Products

Hawkins represents clients, both public and private, in a broad spectrum of financing transactions involving securitizations of a broad range of financial asset classes.  These include securitizations of public housing subsidies, including federal rental assistance payments and federal housing modernization grants, student loans, home mortgages, sales and use taxes, state energy charges, federal military housing subsidies, and litigation settlements, including tobacco settlement revenues. Hawkins also has substantial experience with secondary market municipal bond securitization. The firm has unique expertise with respect to securitizations by governmental entities and of governmental revenue streams. One of the first governmental financings that was categorized as a securitization was the financing by the New York City Transitional Finance Authority that securitized the personal income tax of The City of New York for the purpose of providing funds to finance a portion of the capital needs of New York City.  Hawkins served New York City as its counsel at the rating agency presentations and as its successful litigation counsel when a taxpayer challenged the constitutionality of the enabling statute.  In 2002, Hawkins represented the State of California in its securitization issue of $11.3 billion in revenue bonds to finance power purchases, the largest bond issue ever completed by any public issuer.  In the area of securitization of settlement revenues payable to most of the states by tobacco companies pursuant to the Master Settlement Agreement, Hawkins is the leading law firm in the nation, having participated in over 77 transactions representing in excess of $44 billion in financing. A number of these securitization transactions received national awards for their precedential creativity, including The Bond Buyer’s Deal of the Year awards for the financing of high-rise bachelor housing in San Diego for Navy sailors (through securitization of the federal Basic Allowance for Housing) and for the financing of capital modernization of Puerto Rico public housing projects (through securitization of federal Capital Grant Funds).  

The firm also regularly advises its clients on primary and secondary market synthetic variable rate programs.  In the primary market, clients are assisted with the creation of derivative instruments designed to address client needs to reduce interest rate exposure and achieve other objectives.  These include interest rate swaps, caps, options and forwards.  Hawkins assists in the client’s creation of the public record of prudent execution and ongoing management of these complicated contracts, as well as appropriate negotiation of ISDA documentation, including Schedules, Confirmations and Credit Support Annexes, to meet the client’s needs.

 

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