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HedgeLoan Stock Loan Financing and Stock Options Programs
It is the opportunity to roll your ESOPs into cash while continuing to participate in your stock with a HedgeLoan®. A HedgeLoan can be used to help employees take advantage of their stock option program converting their options into stock and then sending them the proceeds of the ensuing stock loan, all packaged within the same structure with the option owner's consent. By rolling their options into securities financing in this way immediately it can provide the issuer a cash infusion which can be used for any legal purpose other than the repurchase of marginable securities. In addition to tapping the full value of the exercised options as a limited-recourse HedgeLoan or other Premier loan structure, the client's retains participation in the upside growth of his portfolio over the term. |
Example:
Therefore, John receives $155,000 (the cash difference) and the loan now leverages the full 100,000-share position (presumably with a market value of $300K at inception) and he participates in upside growth – all without writing a check. His shares remain in his name, account and title as well. Please contact us here for your questions or to get a quick Premier HedgeLoan® or Premier securities loan quote. |
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Copyright © 2009, HedgeLender LLC . All rights reserved.
2 Penn Center Plaza Suite 200, Philadelphia, PA 19102.
Note: No advice regarding the buying or selling of securities should be implied herein.
Scenarios are hypothetical and do not reflect the circumstances of any particular
company or client.
HedgeLoan may not be used as a tax avoidance method.
Please consult with a licensed tax advisor for specific treatment of loan
proceeds under applicable federal/state tax law. Please read our disclaimer in full..
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