Corporate Trust

Connection MLB and Hennepin County Play Ball withU.S. Bank Corporate Trust Services

A fter more than a decade of arguments, counter-arguments and negotiations,

Major League Baseball’s Minnesota Twins will be getting a new venue. The ballpark, a 42,000-seat open-air stadium in downtown Minneapolis, will be owned and overseen by a new government entity, the Minnesota Ballpark Authority (MBA).

The Hennepin County Twins Ballpark deal is a cooperative effort, with about one-third of the construction funding being provided by the team and two-thirds by Hennepin County. Current estimates for construction are $390 million, plus infra­structure and financing costs. The county is issuing tax-exempt revenue bonds payable with a .15% countywide sales tax increase.

The U.S. Bank Line-up

Fall 2007

2 Specialty Services

4 Spotlight on the Texas Offices

What’s inside

U.S. Bank was appointed as custodian for the Hennepin County sales tax rev­enues collected by the state of Minnesota.

Collections began in March 2007 and are expected to reach $27 million a year. A portion of the sales tax deposits is allo­cated monthly (after the initial series of bonds is issued) to bond accounts set up by the county for debt service.

U.S. Bank was also appointed as trustee and paying agent for the Hennepin County bonds. The first issuance was released in June 2007 for $120 million; subsequent issues, at a maximum of $160 million a year, will be released through 2009. Bond proceeds are gifted by Hennepin County to

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Did You Know … U.S. Bank Corporate Trust Services will be at

the following conferences. Look for us there!

MBA’s Document Custody Conference 2007 Sept. 9-11, San Antonio, TX

Bond Buyer 17th Annual California Public Finance Conference Sept. 10-12, Carlsbad, CA

PA Municipal Authorities Association Annual Conference Sept. 23-26, State College, PA

NCHFFA/NAHEFA Fall Conference Sept. 26-28, Portsmouth, NH

Ohio Association of Public Treasurers Conference Oct. 3-4, Cambridge, OH

IMN 7th Semiannual Native American Finance Conference Oct. 15-16, Ledyard, CT

IMN New England Public Finance Conference Oct. 22-23, Boston, MA

ABS East 2007 Conference Nov. 4-7, Orlando, FL

Opal Financial Group CDO Summit 2007 Dec. 2-4, Dana Point, CA

Specialty Services at U.S. Bank Corporate Trust Services

U.S. Bank offers a full range of corporate trust services, but you may not know about all of the specialty services we

can provide. Following are a few of our unique offerings.

ICG Merges Professional Expertise with Technology

Information Consulting Group (ICG) of Corporate Trust Services, based out of the Jacksonville, Fla. office, is a team of dedicated professionals providing services to meet all of your claims-processing needs.

We work with a knowledgeable team of specialists that includes experts with backgrounds in claims administration, IT infrastructure implementation and support, data management, law, accounting, investment management and call center operations.

Our use of sophisticated management tools results in effi­cient and cost-effective processing. These tools offer workflow support, extensive reporting capabilities and an integrated call center interface. Our experts have consistently developed timely and accurate solutions for some of the most complex claims administration and processing engagements.

Here are just some of the services offered by ICG: • Mass tort/complex claims administration • Escrow services • Disbursing or paying agent services • Data management/data collection and conversion • Class action settlement administration • Bankruptcy claims administration • Call center operations and financial reporting services.

Our one-stop shop can provide everything from pre-settle­ment assistance to check printing to final reporting.

The U.S. Bank Corporate Trust Services ICG serves corpo­rations, law firms and state and federal government agencies and has provided claims administration services involved with tobacco settlement litigation, insurance class action suits, con­sumer fraud cases and more.

Flexible Financing Opportunities with Tender Option Bonds

The Municipal Asset-Backed Securities (MABS) group administers Tender Option Bond (TOB) trusts and other municipal asset-backed trusts. TOBs are formed by depositing one or more municipal bonds into a trust and then issuing two classes of securities: floaters and residuals. TOBs were created to provide institutional investors with a means of leveraging in the municipal market. The TOB trust structure allows these investors to borrow at short-term interest rates and reinvest the proceeds in higher-yielding, long-term tax-exempt bonds, potentially profiting from the spread in the process.

To learn more about any of these services, please contact your local Account Manager or Business Development Officer.

Focus on the Tax Lien Services Group Another specialty service of U.S. Bank Corporate Trust

Services is the Tax Lien Services Group (TLSG), based in the Philadelphia office. TLSG provides services to U.S. Bank customers who invest in tax certificates. These certificates represent tax liens on properties that are delinquent in paying state or municipal property taxes and have had liens placed on them by the applicable tax authority.

The taxing authority may then sell the tax lien at auction to an investor. The investor’s goal is to collect the outstand­ing tax, with interest and fees, from the property owner. If the property owner pays the tax lien debt in the time allowed, the investor earns the interest and fees. If not, the investor will foreclose on the property and actually own the real estate in question.

U.S. Bank acts as custodian and collateral agent for the lender and lockbox agent. The TLSG may also work with the Structured Finance Group in some situations.

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MMI Offers Options for Short-Term Financing Needs

Money Market Instrument (MMI) is the collective name assigned by the Depository Trust Company (DTC) to those securities for which net settlements are made through DTC and which settle on a same-day basis. The principal MMI products offered by U.S. Bank Corporate Trust Services include commercial paper (CP), medium-term notes (MTN), certificates of deposit (CD) and asset-backed commercial paper (ABCP). Many companies utilize CP to raise cash needed for current transactions, and many find it to be a lower-cost alternative to bank loans. With CP, the decision to place the paper, as well as the marketing of the paper, the issuance and delivery of the paper and all payments (both for the issuance and the redemptions), are accomplished on the same day.

The MMI Issuing & Paying Agent (IPA) business is oper­ated out of our New York office. As Issuing and Paying Agent we make a full accounting to both the buying and selling parties, track the movement of funds, collect and pay inter­est and principal, and issue new instruments when instructed. The need to handle large dollar amounts of maturity present­ments and issuance of CP on a daily basis creates significant demands on the funding and processing infrastructure.

We accomplish this with a dedicated and experienced staff of administrative and operations professionals using the U.S. Bank Securities Processing Automated Note System Online (U.S. Bank SPANS Online). U.S. Bank SPANS Online provides issuers of MMI with balance informa­tion, transaction details and analysis tools without having to maintain special software or a dedicated computer. We offer customizable reports, approval of trades prior to release for settlement, export of data into a variety of use­ful formats, ability to set varying security levels and other report and research information.

For more information on any of these services, contact your U.S. Bank Corporate Trust Services Account Manager or Business Development Officer.

MLB andU.S. Bank continued from page 1

the MBA shortly after issuance. Monthly deposits are made to the bond funds from the sales tax revenue custody account for debt service and surplus escrows.

Pitching in to Strengthen Communities

Municipalities are increasingly pitching in for the cost of stadiums and other sports venues. For example, early in July The Bond Buyer reported a boom in com­munities throughout the Southwest issuing debt to finance facilities for major and minor league teams.

Proponents argue that professional sports teams promote economic development by creating jobs, stimulating revenue for surrounding businesses and helping to revitalize urban areas. Municipalities hope to benefit through increased sales tax revenue resulting from spending by visitors and others connected with the teams. And the teams themselves benefit, of course, since they get an assist in financing as well as the poten­tial for issuing tax-exempt rather than taxable debt through arrangements with the city, county or state.

If you are considering public financing for sports facilities, U.S. Bank would like to be on your team. Please contact your Account Manager.

Team Spirit Builds Louisville Multipurpose Arena

U.S. Bank was recently named trustee, paying agent and registrar on a $360 million bond issue by the

Louisville Arena Authority in Louisville, Kentucky. The bonds will be issued in December 2007 for a

new, state-of-the-art multipurpose arena, suitable for NCAA events, in downtown Louisville. The stadium is primarily for use by the University of Louisville men’s and women’s basketball teams, which will have priority scheduling, but is expected to host other sports including gymnastics, volleyball, wrestling and ice hockey. Construction will begin immediately after the bonds are issued.

“We are pleased that the Louisville Arena Authority rec­ognized U.S. Bank’s commitment to the Louisville market. Our local Account Managers look forward to leveraging their experience with sports-related issuances with this transaction and are very proud to be working with the Authority on this valuable community project,” says Michael Dockman, vice president, U.S. Bank Corporate Trust Services.

The Louisville Arena Authority was formed to oversee the design, construction and operation of the complex. Financing is a joint effort, with the state of Kentucky, Louisville Metro and the business community each contributing toward the costs.

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Dallas and Houston

Spotlight on the Texas Offices

Everything’s big in Texas, and that applies even to the corporate trust business. “Some of the largest and most

frequent issuances of municipal debt in the nation come out of Texas,” says Dyan Huhta, vice president, U.S. Bank Corporate Trust Services. “So having a U.S. Bank presence in Texas is critical. In fact, Dallas is the first office we opened independent of an acquisition in many years.”

The Dallas office, with two account managers at the vice president level, covers Dallas and northern Texas and offers the full range of corporate trust services, including municipal and corporate transactions and escrows. The Houston office, cover­ing Houston and southern Texas, also provides municipal and corporate services, and has a considerable book of business in housing issuances.

“The Houston office was brought into the U.S. Bank fam­ily through the Wachovia acquisition,” says Ronda Parman, vice president, business development officer in Houston. “Our office opened in 1999 and has continued to grow amid numerous name changes. We have two account managers, an account set-up specialist who supports both Texas offices and myself. Our group handles many corporate deals, tak­ing advantage of the presence of many oil and gas companies in the area issuing corporate debt, making acquisitions and entering into mergers.”

U.S. Bank Corporate Trust Services Dallas employees

U.S. Bank Corporate Trust Services Houston employees

The U.S. Bank focus on local service serves the Texas mar­ket well. “Our local presence allows us to visit with clients easily, interacting with them at conferences and networking opportunities,” Parman says. “Customer service is very impor­tant to us, and our location allows us to respond to clients quickly and manage their accounts efficiently.”

“Our employees in Dallas and Houston have a broad range of experience,” Huhta, who manages the Texas account man­agers among others, adds. “And we look forward to growing the Texas market.”

If you find yourself in the Lone Star State, stop by and visit our Dallas and Houston offices. For more information on how U.S. Bank Corporate Trust Services can provide creative solu­tions, contact your Account Manager.

The articles and information included in this newsletter are for your information and are not intended as legal, accounting or tax advice. While the information is intended to be accurate, neither U.S. Bank Corporate Trust Services nor the publisher accepts responsibility for relying on the information provided. ©2007 U.S. Bank Corporate Trust Services. Member FDIC.

Comments and suggestions for the newsletter are welcome and should be forwarded to Tahra Loy, Corporate Trust Connection, U.S. Bank Corporate Trust 4 Services, (651) 495-3913 (phone) or marketing.corporatetrust@usbank.com (email). For more information, visit our Web site at usbank.com/corporatetrust.

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