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In
a depressed market, the ability to gain access to
capital resources in a private transaction can be a
severe challenge. Often
companies are forced to sell securities or dilute
shareholder value to accomplish their goals.
Stock loans could prove to be an invaluable
financing solution for you.
These loans, which can be used for personal or
business purposes, can be funded within as little as
five days and typically have low interest rates.
The
Stock Loan program is simple, fast and effective.
At a time when markets are depressed, and access to
capital becomes more difficult, the advantage of a stock
loan whereby you can borrow against your securities,
rather than sell it, will give you the capital resources
you require without losing possession of your asset.
Loan to values (LTV) range from 30% to 90% depending on
the security, whether it’s restricted 144 securities,
aged affiliate securities or free trading securities.
They
start by providing the highest loan to value possible
based on a recent market assessment of your stock
position. Terms of the loan are two to three years
with one to two year lock-ups. Each loan has the
option of extending the loan an additional one to two
years, should you determine you need more time to assess
your position. Interest rates are prime, to prime
plus one or prime plus two, with simple interest
payments made quarterly. This enables the borrower
to simply cover the cost of the interest on a yearly
basis and only be responsible for the principle that is
due at the term of the loan, should you desire to
recover your securities.
Should
you have Domestic or International Securities and are
interested in how you may borrow against them please contact
CMI to discuss your options in greater detail.
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