Princeton Corporate Solutions Home Page
  
                 
                                         
                       Publicity Marketing    
                       Global Expansion    
                       Stock Loan    
                       Take Your Company Public    
                                         

The Stocks and Bonds (Marketable Securities) Loan Program

What Securities Qualify?

  • Stocks
  • Bonds
  • Mutual Funds
  • Stocks of companies that were public and have recently gone private (if value can be determined)
  • Other Listed Securities with CUSIP or ISIN #’s


What Does It Cost?

  • Rate based on 3 Month LIBOR (London Interbank Offer Rate) rate currently at 0.25%
  • Rate is variable and risk based pricing
  • Can be as low for S&P stocks or Bonds of LIBOR + 25-250 basis points but typical is LIBOR + 85
  • Fees 3% of funded amount for amounts up to $10 Million, 2% for funded amounts from 10-20 Million
  • Payment is Interest Only with no Prepayment penalties
  • Semi-annual Payment Schedule

Loan to Value Amounts: 75-85% for Stocks, 88-90% for Bonds
Terms: Typically 3-5 yrs with up to 3 additional rollover periods of same term
Client still owns their securities so it’s a Non-Taxable Event and Non-Recourse

How It Works:


  1. Client presents us with portfolio holdings and where securities are held (which broker/dealer)
  2. Loan to Value on Portfolio and Rate based on risk is Quoted to client (typically done within 2 business days)
  3. After agreement on terms, due diligence, documentation and closing is typically ~4-6 weeks


Client Case Studies

Client A is in the gaming business based in the Southeast and had problems getting conventional financing to fund their growth. The project was a bid and fulfillment of contract to place gaming machines in new locations recently approved for gaming. The need was $1.2 million and while the company itself could not fund its growth, the owner’s personal portfolio of mostly blue chip stocks got a loan to value of 85% and a rate of 0.75% with a cap at 1.75% for 5 yrs. He has the option to renew for 2 additional 5 year periods.


Client B has substantial real estate holdings both residential and commercial. One of his larger commercial mortgages was getting ready to reset with a large balloon payment due. Not having the money and not being able to refinance with his bank he came to us. The need was $1.4 million and in this case the portfolio consisted of only one stock. That stock was a large cap stock nearly a ‘blue chip’ company that got a loan to value of 82% and a rate of 1.05% with a cap of 2.05% over a period of 3 yrs. He has the option of renewing for 2 additional 3 year periods.


Client C has a company that is ready to go public. They are already on board with an investment bank and their IPO has already been priced and is ready for sale to the underwriting syndicate prior to its listing and trading on the NASDAQ stock exchange. The company needed a bridge loan as well additional funding to pay the substantial investment banking and stock exchange fees to complete their listing. The need was $1.5 million and we used the treasury stock of the company itself that was going to be issued to do a loan at 78% loan to value at a rate of 1.00% and a cap of 2.00% over a period of 3 years. They have the option of renewing for 2 additional 3-year periods.

Princeton Corporate Solutions, LLC.
73 Old Dublin Pike
Suite 10 #142
Doylestown PA 18901
Office: 267-233-0183