In terms of dollar volume, the East Cameron Gas Co. Sukuk Trust is not exactly a big deal, at $165.6 million. Yet those involved with the transaction are billing it as the first true U.S.-based future-flow securitization backed by overriding royalty interests in gas resources, which also comply with shari'ah laws.

Essentially, sale proceeds from gas and oil compounds extracted from underground exploratory wells in the Gulf of Mexico will be packaged as overriding royalty interests (ORRI). Those interests will secure notes issued from East Cameron Gas Co. Sukuk Trust. Investors will receive a fixed quarterly return of 11.25%. Along with payment of residual return, the deal matures in July 2019. Merrill Lynch was the sole boookrunner. It also acted as co-arranger, along with Beirut-based BSEC-BEMO Securitization Sal.

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