Standby Equity Distribution Agreement

Treasury Stock Loans

Stock Equity Distribution Agreement Inquiry

Stock Loans let you tap your equity without selling shares!  

Individual shareholders of public companies can gain access to cash with a NO MARGIN CALL stock loan collateralized against your public company stock. Aged affiliate or free trading common shares apply. Quickly obtain 35% to 80% of your stock's value on a non-recourse loan basis. Retain upside potential in your stock. But in the event of a price decline, you can walk away with no consequences. You will have created a hedge situation! Even if your stock is not eligible for a margin loan, it can often qualify for this aggressive program. Fees are paid only if your loan is completed. There are no credit checks or income verification!

Each loan is priced individually, but in general you can expect the following terms:

  • Loan duration is typically three years with the borrower having the option to extend one or two additional years. There will be a lockout period of eighteen months, after which partial or full prepayments can be made.
  • Interest rates generally vary from prime to prime pus one. Sub-prime rates can be offered. You make quarterly, interest-only, payments.

  • Borrower retains ownership of stock at all times.

  • 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 (LTV) varies from 35% to 80% depending upon the quality of the collateral.
  • The loan is non-recourse and thus not personally guaranteed by the borrower. If the stock falls significantly in value, you have the option to walk away from the loan without adverse consequences.

  • Since the transaction is a loan, not a sale, it is not subject to disclosure under rule 144. In the event of a default and the sale of the shares, a 144 reportable event is triggered.

Here's the simple process:

1) After speaking with one of our loan officers, 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 along with some related information. 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 collateralized stock loan!