Need Capital? -Bond Costs Are Much Higher Than Stock Loans

Need Capital? -Bond Costs Are Much Higher Than Stock Loans

The illustration below is a real life example of how CEOs are getting taken advantage of in bond financing because they are unaware of genuine alternatives.

Many executives are unfamiliar with an SCG stock loan as a financing tool.

Certainly their CFOs, bankers and lawyers are not telling them.

Stone Creek Global has been the world's largest direct lender of stock loans for 14 years.

Our funds are cheaper, simpler and easier to get than selling equity, or debt financing from banks, institutional or private lenders

For example, CFOs tend to be very conservative and stick to the familiar.

But what if the familiar is costing you $36M?

The commonest objections I hear are that (1) executives have never heard of a stock loan, and (2) when they are informed of the tangible benefits of working with SCG, "It’s too good to be true.”

Remember what Arthur Schopenhauer once said:

“All truth passes through three stages:

First, it is ridiculed; second, it is violently opposed; and third, it is accepted as self-evident."

A corporation (reported in PitchBook News) recently placed $600M of 8% senior notes with a spread of T + 460 plus the associated costs of issuing the bond, which I estimate were 3%.

Given that our rates (3.99% fixed simple interest) are about the same as treasury bills, this company paid in excess of 600 points for its bond financing compared to using our product.

600 points on $600M is $36M that the corporation would have saved by working with SCG.

If these numbers get your attention, contact me for an online interview.

I'll follow up with arrangements for a binding term sheet.

Your pre-qualifications are electronic free-trading shares (outside the U.S.) with a minimum 90-day average trading volume of USD $50,000.

Our usual LTV is 40%-60% and our loan range loan is $1M-$500M and up.

So on average, a $100M stock loan requires $200M of stock to be pledged and held by an independent custodian.

SCG has never defaulted on its loan arrangements with any client and has never failed to return the original shares in toto upon completion of the loan repayment.

All our loans are non-recourse and not cross-collateralized.

That means if you default or the stock market crashes, our only collateral is the stock and we do not pursue your personal and other corporate assets!

(Try to get those terms from your banker or a private lender!)

In terms of over-concentration of stock and risk mitigation, SCG takes all the risk and you can sleep at night.

Paying 1% quarterly for this kind of insurance is peanuts.

The first step in our loan process is for me to meet online with an authorized signing representative.

We are a craft operation and all of our dealings are face-to-face.

We encourage all CEOs to ask their legal teams to proceed with due diligence.

SCG has issued many hundreds of loans and been vetted by thousands of lawyers.

Our principals are Steve Decker and Mark Brundage. Check them out.

More detailed information is available on my website stonecreekglobal.com/

Kindest Regards,

?

?Ben Kasprzak

International Account Executive

Did you watch More Money More Liquidity less risk?

Direct:?+1 (347) 943-5680

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