Securities Success Stories

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Tobacco Fee Securitization
  Quick Facts


• Acting as tax and securities counsel for lawyers in Louisiana
• Negotiated arrangement to allow clients to receive current payments from their future payment streams


As part of a landmark settlement among forty-six states, the District of Columbia, five American territories, and the five largest American tobacco companies, the tobacco companies agreed to pay billions of dollars in attorneys fees over time to the lawyers who successfully represented the states in various liability suits against the tobacco companies.

Elkins, P.L.C., acting as both tax and securities counsel, represents a group of those lawyers in Louisiana who are negotiating to structure their payment rights as a security which they would sell to institutional investors. By accepting a discount calculated on the present value of these future payments, our clients are able to receive a current payment for the future payment stream, while, at the same time passing on to institutional investors the risk that the tobacco companies would be unable to make these attorney fee payments in the future due to bankruptcy or any other reason.

 

Securities Transactions
  Quick Facts


• Experience in private placements and representation of placement agents in connection with due diligence investigation of issuers


The lawyers of Elkins, P.L.C. are experienced in securities transactions. We have represented issuers of securities in private placements, in which we prepared the private placement memoranda used in connection with the securities offerings. We have also represented placement agents in connection with their due diligence investigation of issuers. One recent transaction involved a registered public offering of securities, in which we advised a Mississippi seafood processing firm in connection with a 10 million share secondary offering by one of its shareholders. Elkins, P.L.C. prepared the registration statement filed with the Securities and Exchange Commission for this offering.

 

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