Stock Loans (Referrals Welcome)

Altivolus Capital Partners, LLC offers stock loan solutions.

We provide direct lending of non-recourse loans against publicly traded securities across many markets and exchanges in the world.

Securities based debt is private and not reported in most jurisdictions. It is most often used by shareholders to defer taxes and raise capital for expansion and acquisitions.

LOAN FEATURES:

• Annual interest rates of 4 - 5% payable quarterly. Loan to Value (LTV) up to 50 - 60% of stock value.
• Underlying security is held as collateral at an independent brokerage or bank in a Custodial Account. No other requirements, corporate or personal guarantees are necessary.
• Dividends and securities appreciation are credited to the Shareholder since ownership of the underlying stock is retained by the original owner.
• Shareholder’s shares are never transferred, short-traded, hypothecated or pledged. Loan minimum of $1 million USD with maximum to $500 million USD or more.
• Market cap and liquidity are key factors to determine eligibility.
• Transaction timing ranges from 14-21 days to completion.
• Minimum 12-month loan term up to a maximum of 5 years, with rolls and extension. The lock in period is from 1 – 2 years depending upon stock status.
• Shares must be unrestricted and in electronic status. Paper stock will not be accepted.
• There is a 5% one time closing fee and a 1⁄2% annual fee for custodial and other services.

PROCESS:

The process begins with a shareholder identifying a need for capital. All that is needed to begin preliminary underwriting is the loan amount desired and the number of collateral shares available to put against the loan. These shares must be unrestricted and free trading in order to be eligible. We will need the stock exchange and the ticker symbol(s) of the securities in question.

The stock loan’s underwriting department can take this basic information and determine generally within a day whether this this stock is eligible. Key factors to determine eligibility are liquidity levels and market cap. We can loan against securities on many exchanges across the world.

Term Sheet:

Once initial eligibility is established the stock loan provider will issue an official Term Sheet outlining the terms, conditions and mechanisms of the loan. The Term Sheet is not an official offer and does not constitute a legal agreement but is merely the basis on which a legal agreement will be built. The Term Sheet must be signed and returned within 4 days of issue to remain valid.

Know Your Client (KYC) Documents:

When a signed Term Sheet is submitted, the stock loan provider will issue an official KYC document. This is a very important part of our underwriting process. The stock loan provider is obliged to meet all global KYC and Anti- Money Laundering (AML) regulations and requirements. It is imperative that this document is filled out completely and all supporting documentation be submitted along with the KYC.

Supporting documentation generally includes:

1. Identification documents for individual borrowers.

2. Current brokerage statement showing the shares that are to be pledged (other balances may be hidden).

3. For Corporate borrowers - documentation showing signatory authority as well as Corporate proof of address. (i.e. a utility bill showing the corporation name and address).

Loan Agreement:

Once the fully completed KYC and all supporting documentation is received by the stock loan provider– the real underwriting process begins. Generally, within a week an Official Loan Agreement is issued. This document is legally binding and outlines the final terms, conditions and offering on the table. This document must be signed by the borrower and notarized and returned to the stock loan provider. Initial documents can be emailed but originals of the document must be mailed directly to the stock loan provider.

Funding:

Immediately following confirmation that the collateral shares are transferred to the Custodial Account, the loan funding occurs immediately and the proceeds are deposited in the location and currency of the share owner’s choice.