Stock Loans

STOCK LOANS

We are a private investment banking group which facilitates loan transactions utilizing public securities on Domestic & Foreign Exchange. Financings are based on a corporation's or individual's securities on a Non-Recourse Basis. We provide loans on stock whether the securities are restricted shares, treasury securities, aged or free trading stock, as well as options and warrants. All Primeau Funding Stock Loans are Non-Recourse. Please click here to read more on Non-Recourse Private Lending Vs Recourse-Margin Lending.

PRODUCT & SERVICES
Personal Loans Secured by Stock (Free Trading & Restricted)
Stock Option Conversion Programs

The benefits of our Collateral Stock Loans:
• Loans are Non-Recourse
• No margin Maintenance Requirements
• Private transaction
• Deferred tax consequences
• Rates as low as 5% for corporations and 6% for individual’s
• Loan-to-Value of between 50% and 80%.
• Can be used with free trading or restricted stock as well as options and warrants.

SUMMARY OF SERVICES
We are a private company that is not required to report, therefore our transactions are private. This financing is non-taxable. What we offer is very unique – "loans with no recourse" which means you don’t face personal liability in the event of a default, as opposed to a margin loan which is capped at 50 percent (LTV) and subject to a Fed-Call when the principal value decreases. So, what we provide is a loan that will never be called unless there is default, in which case can only be on LIBOR based interest paid in Simple, Semi – Annual form. No compound payments – No part of the principal need ever be paid until maturity (it balloons).

We have no margin-maintenance requirements because we’re private and there is no REG-T or REG-U adherence necessary. (REG-T) Fed restriction governing allowable securities, (REG-U) Fed restriction governing allowable LTV’s which calls for maintenance requirements.

If the stock appreciates you can easily pay the term and re-acquire your holdings. And because this condition simultaneously provides the benefit of downside protection, this product is quite simply the best way to enjoy your assets or, for corporations to enhance their assets by restructuring their current debt!

Traditional Securities Financing Program Key Features

• Non-Recourse: There is no personal recourse in the event of a default on the loan.  Your liability stops as your collateral. 
• 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 the potential appreciation.

• Favorable Terms: Most loan terms are a 3-year term with 6-24 month lock outs.

• Attractive Interest Rates: Stock loans are usually offered at low fixed rate 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 upon the individual security, the Exchange and details of the particular situation.

• Agreeable Payment Structure: Loan payments are made payable quarterly on an interest only basis.

Special Requirements - Stock needs to have at least $50,000 per day in liquidity. NASDAQ, AMEX AND NYSE preferred, but will also accept OTCBB. Stock can be affiliate or non-affiliate.

Key Features

(For corporations and officers of publicly traded companies)

Typical Loan Procedure:
1. First we will respond to your inquiry and determine your needs.
2. We will evaluate the security in question and wait for an analytical review then price the loan
3. We will then prepare an actual term sheet (allows for a 72 hour window for response)
4. The client formally accepts proposed terms (non-binding)
5. The client will then receive a loan agreement
6. Client memorializes agreement and delivers securities
7. The client is funded within three (3) business days, post checking asset for preferred interest and liens.
8. The client pays a simple interest and maintains it quarterly
9. The client repays principle at the end of term
10. Upon repayment of the loan, the securities offered as collateral are returned to the client

** Terms are flexible and special needs can be addressed and accommodated.
 

Please click here to read more on Non-Recourse Private Lending Vs Recourse-Margin Lending.

"NEW MARKET REPORTS"

The National Market

The Phoenix Market

PRIMEAU FINANCES:

Golf Courses
Shopping Centers
Self-Storage Units
Apartment Buildings
Construction
Office Buildings
Gas Stations
Refinance
Restaurants
Funeral Homes
Hotels/Motels
Mobile Home Parks
Retail Stores
Car Washes
Automotive Services
Mixed-Use Buildings
Marinas
Auto Dealerships
Retail
Shopping Malls
Raw Land
Bed & Breakfast
Assisted Living
Condotels
Parking Structures
Condominiums
Light Industrial & Warehouses
Other Income Producing Properties

Products and Services

- Land Development Loans
- Stock Loans
- Commercial Real Estate
- Bridge Loans
- Hard Money