The stated motivations for the SLBT include capital improvement, construction financing, repay bank loans, invest in other assets, and repurchase first mortgages.
For the 14 firms reporting sales price we obtained total assets and calculated that the SLBT was on average 4.
The positive response indicates that bondholders do not experience a loss due to a wealth transfer but may benefit from the SLBT.
Since an exact announcement date is known for the firms involved in the SLBT, the average abnormal returns (AARs) for day -1, day 0, and day 1 are also calculated.
argue that the wealth effects are a result of tax benefits associated with the SLBT.
Twenty-one involved the sale leaseback of real estate, 7 SLBTs are associated with power plants, 5 are airplanes and satellites.