Intelligent Alternatives

HedgeLoan Stock Loan Financing and Employee Stock Options Programs (ESOPs)

What is the Intelligent Alternative?

It is the opportunity to roll your ESOPs into cash while continuing to participate in your stock with an Intelligent Alternative HedgeLoan® stock loan.

A HedgeLoan can be used to help employees take advantage of their stock option program by advancing the amount needed to convert their options into stock and then sending them the proceeds of the ensuing HedgeLoan.

By rolling their options into HedgeLoan stock loans immediately, there’s no advance exercise cost (no out-of-pocket expense) and the client maximizes his leverage in the equity. As always, exercising the option also gives the issuer a cash infusion which, if managed correctly, can enhance the value of the underlying collateral - the stock.

Behind the Numbers:

Example:

John Shareholder owns 100,000 stock options exercisable @ $1 per share. The stock trades at $3/share. John wants to exercise but doesn't have $100,000 readily available.

HedgeLender facilitates an advance to cover the $100,000, and a loan against the $300,000 portfolio that results - all at once.

At a 90% advance rate, the loan would be $270,000, minus the $100,000 we advanced.

Therefore, John receives $170,000 (the cash difference) and the loan now leverages the full 100,000 share position for him (he participates in upside growth) – all without writing a check.

Please fill out the form below and one of our staff will be in touch with you shortly. Get more information at www.hedgelender.com. Call us at 1-800-244-7616, or go directly to our full online application here.

Looking for other solutions? Visit our other Intelligent Alternative presentations.

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