PROGRAMS


Standby Equity Distribution Agreement

Treasury Stock Loans
 

Stock Equity Distribution Agreement Inquiry

Public Company Restricted Stock Loans

 
Public corporations can now gain significant debt financing with a NO MARGIN CALL stock loan collateralized using fully RESTRICTED STOCK!!!!    Quickly obtain significant cash on a non-recourse loan basis.    Newly created treasury shares qualify!!  Fees are only paid if your loan is completed.

General Terms:

  • Loan duration is three years with the borrower having the option to extend one or two additional years. The loan can't be prepaid during the three year period.
  • Legends remain on the certificates!!!   


  • Interest rates of 3-4%. Interest only payments are due quarterly..
     
  • Corporation retains ownership of stock.
     
  • This is a collateral loan - not a margin loan. There will be no annoying margin calls in the event of a price decline.
     
  • Loan-to-value varies from 65% to 80%.
     
  • The loan is non-recourse and thus not personally guaranteed by the corporation. If the stock falls significantly in value, you have the option to walk away from the loan without adverse consequences.


  • Quick loan processing.


  • Borrow up to 9.9% of your company's market capitalization.

  • Your company must have a market capitalization exceeding $250 million.
     
 Here's the simple process:

1) After speaking with one of our loan officers to see if your company's stock qualifies, you can usually receive a non-binding term sheet within 24 hours.

2) If the non-binding terms are generally acceptable, you simply fax in the signed term sheet. Within 2 to 3 business days you will receive a detailed contract and allowed ample time to conduct any due-diligence you deem necessary. You are not committed to the transaction until the actual transfer of the shares.

3) Funding can occur in as little as 3 business days following the acceptance of the contract.


Click here for more information on a Public Company Restricted Stock Loan!