| What's the FreeSpirit Solution? |
It is the opportunity to refinance your margin debt to remove the possibility of an unexpected call using a Structured Securities Loan
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We can facilitate a loan of up to 85% of
the market value of your total portfolio, pay off your margin balance,
and send you the change.
These loans are non-callable so need to worry
about having your loan called if your equity declines. In this structure,
you are taking a loan against the unmargined portion of your portfolio,
using the proceeds to release the margin, then placing the entire
portfolio - newly freed of any restriction - up for your nonrecourse -
limited-recourse financing - with no threat of future margin calls
going forward.
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| Behind the Numbers:
Example:
- You own £1,000,000 worth of ABC stock and have a £500,000 margin balance. We can lend £850,000; We will send
- £500,000 to your broker to pay off your debt; and you'll keep the rest - £350,000 - in a nonrecourse stock loan.
- Note
that the exchange is handled simultaneously with the securities firm
holding the shares through the DVP demand-vs-payment) procedure for
instant crediting and processing. Please note that no escrow or any
other system is permitted.
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