Traditional Securities Financing Programs
Non-Recourse––
There is no personal recourse in the event of a default
on the loan. The only collateral that is held for the
loan are the pledged shares of stock. No Margin
Maintenance Requirements––
The structure of this loan does not include the use of
margin maintenance requirements. Non-Callable–– The loan
will not be called during its term. Investor Maintains
Upside Potential––
In the event that there is no default the borrower will
retain the benefit of potential appreciation to the
value of the securities. Favorable Terms––
Typical loan terms are a 3 year term with a 18 month
lock out. Attractive Interest Rates––
A typical loan is offered at Prime to Prime plus one;
slightly higher or lower terms may be applicable given
certain variables and conditions. Domestic and
International Exchanges––
Loans are available for securities on virtually all
exchanges both US and International, [excluding pink
sheet] and 144 restricted stock. Availability and terms
of loans vary based on the individual security and
details of the particular situation. Agreeable Payment
Structure––
Loan payments are made payable quarterly on an interest
only basis.
Special Requirements–– The stock needs to be trading at a minimum of $30,000
per day. The price must be at least $1.00 per share. The
price can be lower but trading volume must be supported.
NASDAQ, AMEX AND NYSE boards are preferred but we will
also accept OTCBB. The stock can be affiliate or
non-affiliated. The stock can also be FREE TRADING.
Restricted Securities Financing Program [For Corporations
and Officers of Publicly Traded Companies]
The Criteria––
Minimum Market Capitalization of $250 million to $500
million US
dollars for financing of up to 5% of market
capitalization. Market Capitalization of $500 million US
dollars or more, for financing of up to 9.9% of market
capitalization.
General Terms
Loan to Values [LTV] from 40% to 80%
Interest Rates From
2.5% to 4% Annualized
2 to 5 Year Terms
Minimum Financing for
Corporate Officers is $1.5 Million US Dollars
Minimum Financing for
Corporations is $5 Million US Dollars
$200 Million US Dollars Maximum
Financing
Requirements
Treasury Securities
[with legend, in certificate form]
Legal Opinion Letter
Advantages
Non-Recourse
No Credit Check
No Background Check
Financing Available in The Marketplace
Non
Recourse Stock Loan Program
Do you own shares of stock? Are you looking for
financing? Do you own shares of stock that don’t qualify
for a margin loan and need financing? Do you have
clients or business associates that do, but don't want
the "margin call /recourse" status that inevitably comes
with these sorts of programs? Affiliates, non-affiliates
and common shareholders of publicly traded companies now
have another option. Get liquidity quickly, while
waiting for the asset to perform. Why lose upside
potential when all you are really looking for is
liquidity? Our terms are very favorable, with interest
rates as low as sub-prime and there are absolutely no
upfront fees. For companies with market caps greater
than $250 million US dollars or higher, we also offer
financing on restricted securities, whether it is
specifically for the corporation or for the
shareholders.
