Investors are encouraged to read the Prospectus for ATEL 16, LLC carefully. The Prospectus has been
provided in conjunction with this presentation. This presentation constitutes neither an offer to sell nor a
solicitation of an offer to buy the securities described herein. The offering is made only by the means of
the Prospectus delivered prior to, or at the time of this presentation. An investment in the Fund is not
suitable for all investors. See the Prospectus under “Who Should Invest” for detailed information on
applicable Fund and state suitability standards.
RISK FACTORS*
Investors are advised that there are significant risks associated with an investment in the Fund, including: most of the Fund’s distributions will be, and most of the prior ATEL programs’ distributions have been, a return of capital • Economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates may, and in certain past programs have, resulted in delays in
investment and reinvestment, delays in leasing, re-leasing and disposition of its investments, and reduced returns on invested capital • The Fund’s performance is subject to risks relating to lessee and borrower defaults • The Fund’s performance is subject to risks relating to the value of its investments when it seeks to sell them in its liquidation phase • the Fund will borrow to buy some of its investments and, if Fund revenues are insufficient to repay borrowed Funds, the Fund will incur a loss of assets used as collateral • No market exists for the units, and an investor may be unable to sell the units or able to sell the units only at a significant discount • Except as may be set forth in a supplement to the prospectus, the Fund has not specified any of its investments, so that investors cannot evaluate the risks or potential returns from such investments • Investors must rely on ATEL to manage the Fund; the Fund will pay ATEL substantial fees which may result in conflicts of interest • The Fund does not guarantee its distributions or the return of investors’ capital. • The Fund may be harmed if a lessee or borrower defaults and the Fund is unable to collect the revenue anticipated from the defaulted investment. • The Fund cannot assure that its value assumptions will be accurate or that the leased assets will not lose value more rapidly than anticipated. • Investors should consider an investment in the Fund as a long term investment. • At ATEL, we currently lease equipment on behalf of our investors to some of the best-known companies in the world.
Equipment lessees, manufacturers and borrowers depicted and identified herein are from prior ATEL Funds. Although representative of the types of equipment, lessees, manufacturers and loans intended to be acquired by the Fund, investors in the Fund will not acquire an interest in any of the equipment or transactions described herein.
ATEL 16 – Financing America
3
ATEL leases the equipment that
uses to grow and
harvest its crops.
then transports the grain in railcars leased by ATEL to
for processing on equipment leased by ATEL.
Which is then transported to market in
tractor
trailers leased from ATEL.
* Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs, and, while representative of the types of equipment, lessees and manufacturers intended to be in the portfolio acquired by the Fund, investors in the Fund will not acquire an interest in any of the prior program transactions, and there is no assurance as to the composition or diversification of the Fund’s portfolio.
* Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs, and, while representative of the types of equipment, lessees and manufacturers intended to be in the portfolio acquired by the Fund, investors in the Fund will not acquire an interest in any of the prior program transactions, and there is no assurance as to the composition or diversification of the Fund’s portfolio.
ATEL’s KEYS TO SUCCESS
I. Select the right companies
II. Lease the right equipment
III. Structure the lease to protect
investors
“Because everything that can go
wrong will go wrong” Murphy
EQUIPMENT TYPE IS CRITICAL
Equipment type is an important determinant of a client’s overall
investment experience:
We lease :
Business necessary, Low obsolesce, Low technology Equipment
Diversified by Industry, Geography, Cost and Type
We don’t lease :
High technology equipment (computers, commercial aircraft, other assets
with high obsolescence)
SECURITY IN THE CAPITAL STRUCTURE
Bankruptcy Protection is Greatest at the top of the Capital Structure
Position in the capital structure
can be an important determinant
of investment outcomes.
What we do:
Why its good for you:
Equipment leasing is at the
top of the Capital Structure
Protection of Capital
Asset depreciation passed
through to investors
Tax Advantaged Cash Flow
Hard asset backed
May provide Inflation Protection
Market-rate lease pricing
May provide Interest Rate Hedge
35 years managing
equipment leasing portfolios
Experience Matters
PREDICTABLE CASH FLOW
28 years in public partnership syndicate business with
almost 50,000 investors, 14 public funds and 8 private funds
Offering Stage
The funding period lasts up to two years. During this period ATEL 16 will offer its Units to the public. Initial portfolio investments are expected to be made and cash distributions are expected to begin promptly after the minimum funding amount has been reached.
Operating and
Reinvestment Period
This lasts for 6 years following the offering period. Excess operating revenues and proceeds from borrowing may be invested in additional equipment. Distributions during this stage will be considered both a return on capital and a return of capital and are tax-free to the extent of an investor’s tax basis in ATEL 16.
Liquidating Stage
During this final stage of the Fund, no new equipment investments are made while ATEL liquidates the assets of the Fund. Distributions are expected to be paid periodically and to fluctuate based on renewals and asset dispositions. This period can last for 2 or more years.
