Investors are encouraged

Similar documents
ATEL 17, LLC Limited Liability Company Units $10 Per Unit Minimum Offering 120,000 Units ($1,200,000) Maximum Offering 15,000,000 Units ($150,000,000)

Access to Current Company Information on file with the SEC and Incorporated by Reference into the Prospectus.

ATEL 12, LLC (Exact name of registrant as specified in its charter)

SUMMARY PROSPECTUS May 1, 2018

Destinations INVESTOR GUIDE. Multi-asset class solutions to meet a range of investor needs. Dynamic portfolios constructed from mutual funds

A distinctive solution for your plan and employees. TIAA-CREF Lifecycle Funds

RREEF Property Trust. Integrity I Experience I Insight. Not available for use in Ohio.

Horizon Spin-off and Corporate Restructuring Fund

Brochure. Form ADV Part 2A. Item 1 - Cover Page Commerce Advisors, LLC CRD# Poplar Avenue Suite 2020 Memphis, Tennessee 38157

21,000,000 Shares Puerto Rico GNMA & U.S. Government Target Maturity Fund, Inc. Common Stock (Initial OÅering Price of $10 per Share)

Black Creek Diversified Property Fund

RREEF Property Trust. Integrity I Experience I Insight. For Use in Ohio only.

OFFERING CIRCULAR Puerto Rico Fixed Income Fund, Inc.

Prospectus Supplement to Prospectus dated November 18, GE Capital Credit Card Master Note Trust Issuing Entity

A guide to investing in high-yield bonds

ATEL 12, LLC (Exact name of registrant as specified in its charter)

40,625,000 Shares Puerto Rico Fixed Income Fund, Inc. Common Stock

Valor Capital Management, LLC

Black Creek Diversified Property Fund

Institutional Opportunities for Individual Investors


21,000,000 Shares * Puerto Rico GNMA & U.S. Government Target Maturity Fund, Inc. Common Stock

RENAISSANCE INTERNATIONAL IPO ETF

47,920,000 Shares Puerto Rico Fixed Income Fund IV, Inc. Common Stock

reit real estate income trust

20 YEARS CONSULTANCY OF THE LAST INVESTMENT. Mercer Investment Consulting s Achievement as sub-advisor for. We are proud to recognize

PROSPECTUS. 25,000,000 Shares of Beneficial Interest $2,500 minimum purchase May 1, 2017

ATEL Cash Distribution Fund VI, L.P.

PROSPECTUS SUMMARY. The Fund

POPULAR INCOME PLUS FUND, INC.

The Pokorny Group at Morgan Stanley Smith Barney. Your success is our success.

ANNUAL FUND OPERATING EXPENSES

Government Money Market Funds

LVIP PIMCO Low Duration Bond Fund. Summary Prospectus May 1, (Standard and Service Class) Investment Objective.

Government Money Market Funds

Prospectus. Access VP High Yield Fund SM

Rodin Global Property Trust, Inc.

Government Money Market Funds

Great Lakes Small Cap Opportunity Fund

Randall W. Merk President

PROSPECTUS Class A Shares (RREDX) of Beneficial Interest February 1, 2018

Information Supplement

RENAISSANCE CAPITAL GREENWICH FUNDS

UMA Model Portfolios Professional Advice for Your Unified Managed Account

Total Income+ Real Estate Fund

PROSPECTUS Class W Shares (WRREX) of Beneficial Interest February 1, 201 9

IRONWOOD INSTITUTIONAL MULTI-STRATEGY FUND LLC. Limited Liability Company Interests

Information Supplement

INFINITY CORE ALTERNATIVE FUND PROSPECTUS

Prospectus. Access VP High Yield Fund SM

20 YEARS FINANCIAL NEWS, 2016

Puerto Rico GNMA & U.S. Government Target Maturity Fund, Inc.

INVESTMENT ADVISER BROCHURE FORM ADV PART 2A MMBG INVESTMENT ADVISORS CO.

PROSPECTUS Total Income+ Real Estate Fund

Black Creek Diversified Property Fund

NorthStar Real Estate Capital Income Fund-T Common Shares of Beneficial Interest

Exploring Complementary Investment Opportunities: Real Estate Investment Trusts

TEMPLETON GLOBAL BOND VIP FUND

Wulff Capital Management

Healthcare and Life Sciences Private Debt and Royalty Opportunities

Reality Shares Nasdaq NexGen Economy ETF BLCN (The NASDAQ Stock Market LLC)

Information Supplement

MVP REIT II, INC. $550,000,000 Maximum Offering

Access VP High Yield Fund SM

STARWOOD REAL ESTATE INCOME TRUST, INC. (Exact name of Registrant as specified in Governing Instruments)

Credit Suisse AG ( Credit Suisse ), acting through its London branch

Series 52. NBC Deposit Notes NBC S&P/TSX Composite Low Volatility Index with Low Point Deposit Notes. On or about September 10, 2024

INDEXIQ ETF TRUST. IQ Hedge Macro Tracker ETF IQ 50 Percent Hedged FTSE Europe ETF

FRANKLIN INSURED TAX-FREE INCOME FUND IMPORTANT SHAREHOLDER INFORMATION

$2,600,000 ABN AMRO Bank N.V. MEDIUM-TERM NOTES, SERIES A Senior Fixed Rate Notes

A distinctive solution for your plan and employees. TIAA-CREF Lifecycle Funds

RISK DISCLOSURES FROM INTERACTIVE BROKERS ASSET MANAGEMENT FOR SSGA GLOBAL TACTICAL ASSET ALLOCATION ETF MODEL PORTFOLIOS

SUMMARY PROSPECTUS. BlackRock Allocation Target Shares BATS: Series E Portfolio Series E Portfolio BATEX. July 28, 2017

NEW YORK METRO REAL ESTATE. RXR Realty New York Regional Office. Leading the Way in New York Real Estate Investing

Karp Capital Management Corporation

Form ADV Part 2A Disclosure Brochure. WrapManager, Inc. 703 Market Street, 18th Floor San Francisco, CA

Summary Prospectus August 28, Principal Listing Exchange for the Fund: NASDAQ Stock Market Index LLC ( NASDAQ ) Ticker Symbol: ROBO

Summary Prospectus. ProFund VP UltraShort Dow 30

NOTICE TO INVESTORS: THE NOTES ARE SIGNIFICANTLY RISKIER THAN CONVENTIONAL DEBT INSTRUMENTS.

DDJ CANADIAN HIGH YIELD FUND

IT S LI KE A CHOOSE- YOUR-OWN- FOR COLLEGE SAVINGS PORTFOLIO OPTIONS

West Virginia Housing Development Fund. Debt Management Policy

ADVISORSHARES TRUST 2 Bethesda Metro Center Suite 1330 Bethesda, Maryland THE.ETF1

PARNASSUS FUNDS 1 Market Street Suite 1600 San Francisco, California 94105

Hull Tactical US ETF EXCHANGE TRADED CONCEPTS TRUST. Prospectus. April 1, 2019

INCOME FUND THE BDC INCOME FUND. PROSPECTUS November 24, Advised by: Full Circle Advisors, LLC

STRUCTURED INVESTMENTS Opportunities in U.S. and International Equities

11650 Lantern Road Suite 215 Fishers, Indiana Telephone: February 6, 2017 FORM ADV PART 2A BROCHURE

UBS Money Series (renamed UBS Series Funds )

Important Information about a Fund of Hedge Funds

2018 Summary Prospectus

Summary Prospectus. ProFund VP Dow 30

Please find enclosed a prospectus describing the Dominion Energy Reliability Investment program.

PROSPECTUS INVESTOR CLASS SHARES MAY 1, 2006

Meeder Asset Management, Inc.

ETFMG Prime Cyber Security ETF HACK (NYSE Arca) Summary Prospectus September 8, 2017

A LEADING ALTERNATIVE ASSET MANAGER

Round Investments LLC

January-----, 2017 Medium-Term Senior Notes, Series N

READY ASSETS PRIME MONEY FUND (the Fund ) Supplement dated September 2, 2015 to the Prospectus of the Fund, dated August 28, 2015

Transcription:

Investors are encouraged to read the Prospectus for ATEL 17, LLC ( the Fund ) carefully. This brochure constitutes neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The offering is made only by means of the Prospectus which must accompany or precede this brochure. 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* A PURCHASE OF UNITS INVOLVES A RISK OF SUBSTANTIAL LOSS: 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 the Fund s 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 investors may be unable to sell their units or able to sell their 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 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 Manager will be subject to certain conflicts of interest If the Fund receives only the minimum capital, it will be more difficult to diversify its investment portfolio Investors should consider an investment in the Fund as a long term investment The Fund expects to make its final distribution approximately ten or eleven years after the termination of the offering, however, there can be no assurance as to the final liquidation date *For a discussion of these and other risk factors, see Risk Factors, page 4 of the ATEL 17 Prospectus. Equipment lessees and manufacturers depicted and identified herein are from prior ATEL Funds. Although representative of the types of equipment, lessees and manufacturers intended to be in the Fund s portfolio, investors in the Fund will not acquire an interest in any of the equipment or transactions described herein.

The 5 reasons why you should consider ATEL 17 ATEL 17 Objectives Include: 1. Tax Advantaged Cash Flow Monthly distributions are tax free 2. Protection of Principal Leases to high quality corporate credits 3. Passive Income Offset - tax planning tool ATEL 17 is expected to generate passive losses in early years and ATEL 17 is expected to generate passive income in later years 4. Inflation and Interest Rate Hedge Portfolio of equipment leases may protect against inflation and interest rate increases 5. Not Correlated to Traditional Markets ATEL 17 s value is not expected to be impacted by market volatility Please Note: There can be no assurance that the Fund s stated objectives will be achieved. Equipment types, lessees and manufacturers depicted and identified in this presentation are from prior ATEL programs. 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.

The 5 reasons why you should consider ATEL 17 1. Tax Advantaged Cash Flow Objective ATEL 17 is a direct participation program that is structured as a publicly registered limited liability company ( LLC ) which is taxed as a partnership. This unique structure allows investors to share in ATEL 17 s tax benefits (depreciation deductions) while receiving cash distributions that should be tax free.* Note that investors will be allocated their pro rata shares of taxable income or loss each year. *The distributions during the operating period 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 17 pursuant to section 731(a) of the Internal Revenue Code 2. Protection of Principal Objective From 2007 through 2014 ATEL funded lease transactions generating approximately $500 million in lease payment obligations... all of which were collected. The graph to the right demonstrates the credit protection by asset class and ATEL 17 s level of priority with respect to other types of financing and/ or investment. For example, leases have higher priority in a bankruptcy claim than equity capital or secured debt. The reason is simple - the Fund owns the asset and if it is not paid on the lease, the asset must be returned. Furthermore, equipment leases may in many cases be among the first obligations to be paid because the equipment is necessary to operate the business. While there can be no guarantee that ATEL 17 will not be adversely affected by lease payment defaults, ATEL has been successful in limiting losses from defaults. For further information on lease term objectives see pages 36 and 37 of the ATEL 17 Prospectus. Note that past performance of prior ATEL programs is no guarantee of future results. lowest relative priority of creditors highest Equipment Leases Secured Financing Senior Debt Subordinate Debt Preferred Equity Equity ATEL Securities Corporation 2

ATEL 17 s objective is to provide its investors with a cash flow that is tax advantaged along with passive tax losses which can be used to offset passive income.

The 5 reasons why you should consider ATEL 17 Continued 3. Passive Income Offset - Tax Planning Tool Federal and state income tax laws will permit ATEL 17 to generate tax losses due to depreciation deductions on the equipment it owns. Because the Fund is structured as a partnership, these non-cash losses are allocated to the investor and reported on their tax returns. These losses are defined as passive and can only offset passive income. ATEL can be the P.A.L. to your P.I.G. Many investors own assets that generate passive activity income, they are known as Passive Income Generators ( P.I.G. ). P.I.G. s are considered passive under federal tax law because the investor is not considered to materially participate in the enterprise. P.I.G. s can only be offset by Passive Activity Losses ( P.A.L. ). ATEL 17 is expected to generate P.A.L. s in it s first 4-5 years. Passive taxable income is expected to be allocated to the investor after this period. 4. Potential Inflation and Interest Rate Hedge The market value of existing, low obsolescence equipment tends to rise and fall in conjunction with the prices of new equipment. Should inflation increase the cost of new equipment, it tends to also cause the market value of used equipment to increase. This is often the case for assets that have low obsolescence as they retain their usefulness for longer periods. ATEL 17, similar to prior ATEL funds, will focus on low obsolescence equipment.* Many economists and investors are concerned about the impact an interest rate increase would have on the credit markets. Their focus is on the fact that in most scenarios an increase in rates will have a negative effect on fixed income portfolios. ATEL 17 may provide protection against these negative effects. ATEL s leases are relatively short-term. As a consequence, ATEL can enter new leasing agreements and adjust interest charges quickly to reflect changes in debt markets.* *Note that past performance of prior ATEL programs is no guarantee of future results. ATEL Securities Corporation 4

5. Not Correlated to Traditional Markets Volatility in traditional debt and equity markets is expected to have little impact on the value of the Fund. The value of ATEL 17 will be based on its portfolio of assets as well as the rental stream from its leases. ATEL s prior leasing funds experienced no losses from defaults during the 2008 recession. A Summary of ATEL 17 s Objectives WHAT WE DO / WHY ITS GOOD FOR YOU ATEL 17 is taxed as a partnership Tax Advantaged Cash Flow High quality corporate credits Protection of Principal Asset depreciation passed through to investors Passive Income Offset Backed by hard assets Potential Inflation and Interest Rate Hedge Investment portfolio of leased equipment Non-Correlated Investment Note that past performance is no assurance of future results. 5

ATEL Fund Characteristics Cash Flow and Growth Through Reinvestment After the Offering Stage and through the end of the 6 year Operating Stage, ATEL 17 must make distributions to investors in amounts equal to a minimum of 8% on invested capital before reinvesting in additional assets (the minimum can increase to 10% depending upon prevailing rates on U.S. Treasury Bonds). In order to reinvest and make the minimum distributions, ATEL 17 will focus on the following three investment strategies; 1) asset retention, 2) credit quality and 3) diversification. (1) Asset Retention Asset retention history 36% purchased 35% long term renewal 20% short term renewal 9% returned ATEL 17 s primary goal through the Operating Stage is to have the lessee renew the lease contract. The secondary objective would be to sell the leased equipment to the lessee at fair market value. A renewal increases the economic return of the portfolio for many reasons: first by extending the rental stream and second by having the lessee reimburse the Fund for depreciation multiple times. A sale at fair market value provides the Fund with proceeds for re-purchase. These economic returns help fund the continuous and uninterrupted distributions to our investors. The last end of lease alternative is where the equipment is returned to the ATEL Fund. Historically this has occurred less than 10% of the time. For further information on asset retention please see Exhibit A of the ATEL 17 Prospectus. 6

(2) Excellent Credit Quality (3) Diversification Since forming its first public leasing program in 1986, ATEL s management has focused on leasing low technology, low obsolescence equipment to high quality corporate credits. We have stayed true to this model throughout our history. ATEL s investment portfolio as required by the terms of the Fund s operating agreement, must have a minimum of 75% of its portfolio leased to high quality corporate credits (please see page 34 of the Fund prospectus). Past performance is no guarantee of future results. However, our focus on high quality lessees with excellent credit ratings, combined with our comprehensive diversification strategy, has resulted in the prior 15 ATEL public leasing programs experiencing total losses from lease defaults equal to an average of approximately 0.03% per annum of the total cost of assets acquired. Our focus on credit quality helps to ensure continuous uninterrupted distributions to our investors. The criteria outlined in the ATEL 17 Prospectus is intended to diversify our portfolio by industry, geographic location, cost and equipment type. Our diversification strategy is intended to ensure continuous uninterrupted distributions to our investors. Please refer to pages 41 through 47 of the ATEL 17 Prospectus for a detailed discussion of our diversification strategy. ATEL 17 Life Cycle Offering Stage The funding period lasts up to 2 years. During this time ATEL 17 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 Stage This stage lasts for 6 years following the Offering Stage. Excess operating revenues and proceeds from borrowing may be invested in additional equipment subject to lease. 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 17. Investors will be allocated their pro rata share of the Fund income or losses. 2 years offering stage 6 years operating stage 2 or more years liquidation stage Liquidating Stage During this final stage of the Fund, no operating cash flow will be used to make new equipment investments 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. 7 ATEL Securities Corporation

A message to our investors It is with great pride and excitement that we introduce to you our new public equipment leasing program, ATEL 17, LLC ( ATEL 17 ). ATEL 17 will provide investors the opportunity to acquire an interest in a portfolio of equipment leased to a diverse group of high-quality corporate credits. ATEL Capital Group celebrates its 39th year in the equipment leasing business in 2016. Our leasing experience and the outstanding depth within our acquisition and asset management teams has provided ATEL long standing relationships with many top companies around the world. We are proud to say that many Fortune 500 corporations have selected ATEL as a preferred business partner. ATEL is pleased to offer ATEL 17 to you through an extensive network of financial planning professionals encompassing many of the best known firms in America. We believe the information in this brochure will give you a better understanding of how we position our leasing funds for success. In the face of unpredictable economic conditions, diversification is essential to maintaining a healthy and well-balanced investment portfolio. While all investments involve some risk, ATEL 17 will offer you the opportunity to enhance the diversification of your investment portfolio while potentially reducing portfolio volatility. We invite you to review this brochure and the ATEL 17, LLC Prospectus with your financial advisor and we look forward to helping you reach your financial goals. Yours truly, Dean Cash Chairman & Chief Executive Officer, ATEL Capital Group San Francisco, California January, 2016 ATEL Securities Corporation 8

How to invest: Owning a diversified investment portfolio across several asset classes is a proven investment strategy. However, it is imperative to note that no single investment category can continuously remain the best and no one can predict the top-performing asset class of the future. Your financial advisor can help identify a variety of opportunities designed to match your personal investment goals. Utilizing asset allocation techniques, you and your advisor can select a well-diversified portfolio designed to maximize return and minimize risk. Since equipment leasing is available as an investment primarily to institutional investors, you can generally only access this opportunity through a program such as ATEL 17, LLC, available exclusively through our national network of financial planning professionals. We are pleased to invite you to invest in ATEL 17, LLC. Participation in the Fund offers the potential for diversification and regular, tax advantaged cash distributions.* *These are ATEL 17 s objectives. There can be no assurance as to the timing or amount of distributions. The tax benefit is achieved through depreciation deductions which may defer federal and state tax liabilities. We look forward to welcoming you to the ATEL family of funds. Please review the enclosed prospectus for complete details. When you are ready to finalize your investment in ATEL 17, LLC: 1. Complete the subscription agreement, initial and sign where indicated 2. Make your check payable to ATEL 17, LLC (see the instructions during the escrow period) 3. Your Financial Consultant will fill out Section 7 and confirm the address before mailing in your completed subscription offer and check As a complimentary service, your distribution checks can be directed to multiple accounts and investment plans. We encourage you to take advantage of this opportunity to help further diversify your investment portfolio.

Why companies lease from ATEL Over ATEL s 38 years, we have developed trust and credibility with many lessees that are leaders in their industries, including many Fortune 500 firms. We offer the utmost in customer service by providing the resources, flexibility and creativity to meet the needs of our customers. ATEL has an experienced and stable management team with over 18 years average tenure with ATEL and over 32 years average industry experience. Our experience gives us an advantage structuring leases that compete effectively against some of the world s largest financial institutions. Member: FINRA The Transamerica Pyramid 600 Montgomery Street, 9th Floor San Francisco, CA 94111-2711 800.543.2835 www.atel.com Equipment lessees and manufacturers depicted and identified herein are from prior ATEL Funds. Although representative of the types of equipment, lessees and manufacturers intended to be in the Fund s portfolio, investors in the Fund will not acquire an interest in any of the equipment or transactions described herein.