MLP Financing System
OwnerTerry Ramseyinventor
Life of this patent
Estimating the term…
Abstract
The MLP Financing System extends the properties of shares in an publicly traded entity that does not generate UBITs to create a new asset class that permits the underlying assets to be specifically structured for financing. MLP Financing System requires a minimum of three markets entering into transactions involving a company, a publicly traded entity, and a third entity in the financial industry. Each market establishes an asset value, price, yield, and risk. Asset price differentials between markets identify arbitrage opportunities. The market asset value, price, yield, risk, and financial constraints of entities operating in those markets provide the initial transaction specifications between company-MLP, financier-MLP, and company-financier.
Claims20
A method for providing financing to a company having a plurality of qualified producing assets comprising:
- creating a qualified master limited partnership by limiting a plurality of assets of a master limited partnership to only a plurality of qualified producing assets that do not generate unrelated business taxable income;
- complying with all necessary requirements so that the qualified master limited partnership can exchange assets with a plurality of companies on a stock exchange;
- creating a first new asset class by placing the plurality of qualified producing assets into the qualified master limited partnership through a plurality of tax deferred asset exchanges of a plurality of qualified master limited partnership Units for a plurality of fractional interests in the plurality of qualified producing assets and;
- collateralizing a loan using the plurality of Units in the qualified master limited partnership in accordance with a solution that satisfies a plurality of requirements specified by a loan provider, the company, and the qualified master limited partnership.
A method for adding value to a company's non-producing assets comprising:
- creating a qualified master limited partnership by limiting a master limited partnership to hold only assets that are qualified producing assets;
- creating an asset holding company to acquire a non-producing asset that has a potential to become a producing asset;
- wherein the non-producing asset has an increased value based upon the non-producing asset's potential to become a qualified producing asset that can be exchanged for Units of the qualified master limited partnership and used to collateralize a loan;
- and
- wherein a qualified producing asset is a producing asset that does not generate unrelated business taxable income.
Dependencies are inferred from the claim text.