COMMON STOCK LOANS from USD 1MM to $100MM+
Lending Area: Worldwide*
(including China, India, Korea, Malaysia, South Africa, Thailand, Turkey, Vietnam, etc)
NO UPFRONT FEES
Is your firm a listed public stock company or are you a common stock investor and need access to inexpensive and secure financing? Securities-based financing is a low cost option to consider for any reason. The benefit of getting a common stock loan with us versus your stock broker is that your stock loan is non-recourse, which means that you never get a margin call when your stock decreases in value.
RETENTION OF OWNERSHIP
In most countries, you retain ownership of your common stock that is held in your own brokerage account, so you continue to receive dividends and benefit from any capital appreciation during the term of the stock loan. In countries that implement monetary restrictions on their citizens, title of the stock may need to be transfered to the lender during the term of the loan, and title is vested back to you upon loan repayment.
1) regain control of your common stock by paying the loan in full including accrued interest, if any, or
2) if the value of the pledged common stock has 'fallen below' the amount you owe (including interest), you can simply walk away from the stock loan and only forfeit your common stock. The lender has no other recourse against you, and cannot attempt to recover any of the loan amount or interest from you; your credit rating is not affected.
- Approvals: same day or within 24 hours.
- Arranger Fee: 2 pts to 6 pts, paid at closing from loan proceeds.
- Collateral: public exchange traded stock, freely traded, and unrestricted.
- Interest Rate: range from 3% to 10% depending on the stock liquidity, risk, and the currency that the stock loan is denominiated.
- Lenders: investment groups, high net worth individuals, & endowments.
- Loan-to-Value (LTV): 40%-75%.
- Loan Amount: from USD $1 million to $100 million plus.
- Non-Recourse: the common stock is the only collateral for the loan.
- Payments: interest only, paid in advance (usually quarterly).
- Prepayment Penalty: borrower may not prepay the loan for 18 to 36 months (varies by lender).
- Processing Time: stock loan closes 5-7 trading days from receipt of the term sheet signed by borrower.
- Repayment Term: 2-4 years.
FOR LOAN APPROVAL (24 Hours or less)
Please Provide: (email here)
1) stock symbol (i.e. ticker or #):
2) country/exchange traded on:
3) loan amount (or # shares available):
Time frame for funding is normally 5-7 trading days from date the borrower returns a signed term sheet. STOCK LOAN PROCESS
We also do BLOCK Purchases & Repurchase Agreements (REPOs).
INDIA COMMON STOCK LOANS
OPTION 1 (55% LTV)
TITLE TRANSFERS to lender during the term of the loan due to RBI (Reserve Bank of India) restrictions.
- 20% advanced within 30 banking days
- Arranger Fee: 5 points (paid from loan proceeds)
- Interest only at 5%/year (paid quarterly)
- Loan Currency: USD
- Term: 3 years (borrower has option to extend for an additional year)
- Quick (DVP trade).
- Borrower can have loan proceeds wire transferred to any bank worldwide.
OPTION 2 (40% LTV)
NO TITLE TRANSFER - stock remains at client's India broker dealer.
(Faster closing than Option 1)
- 25% initial advance
- 15% advanced within 30 banking days
A pledge agreement between the borrower's Broker Dealer in India and the lender's bank in Switzerland will retain the stock in the borrower's account at current broker dealer in India. Borrower can pledge as many shares as desired under these terms. Other terms, same as Option 1.
If either of these options is acceptable, please provide:
- stock symbol (i.e. ticker or #)
- loan amount (or # shares available)
- indicate: Option 1 or Option 2
(a) copy of broker account statement confirming shares (including contact information), and
(b) if shareholder is an individual, passport of the shareholder, or
(c) if shareholder is an entity, passport of the CEO, etc, and the certificate of formation.
and email here
Same day, LENDER will provide a term sheet for borrower approval.
Exclusions: the continent of Africa but South Africa is ok.