For_Immediate_Release:
HedgeLender LLC announced institutional securities-backed loan program allowing clients tap their stocks for up to 85% LTV while securities remain safely in their own account and name. March 13, 2009 ‒ Philadelphia, PA (NAT) ‒ A Philadelphia-based financial firm today announced Premier HedgeLoan® and the Premier family of securities-backed loan services featuring loans wherein the securities remain in the client's account and title, prepayment is anytime without penalty, floating monthly LIBOR+4 interest, and management by a major U.S. SIPC-member firm. HedgeLender LLC is a ten-year-old firm offering non-hedge-fund consumer stock loans. It offers a range of feature-rich loan programs exclusive to its private U.S. and overseas clients. The new Premier family of loan programs will be the sole securities loan program for the company effective immediately. Several years in the making, the Premier loans have been built in response to requests by clients over years for features that until now had been unavailable in one program. "Our Premier HedgeLoan, where a public option is structured into the loan for eligible securities, along with the many other custom Premier institutionally managed loan variants we offer, were designed with the current U.S. financial climate in mind", said HedgeLender LLC president and founder Daniel W. Stafford today. "It's a perfect complement to a securities owner's existing financial options, since shares are never sold to fund the loan and the borrower receives regular account statements directly from the SIPC-member brokerage that manages their loan, just as they do with any regulated U.S. stock brokerage. Now they can avail of up to 85% of their portfolio's value - 95% for T-bills - quickly." Policymakers have asked the private sector to help get cash moving again in an otherwise moribund economy. "With our Premier, we like to think we're doing our part", Stafford noted. The program accepts publicly traded stocks, municipal/state/federal bonds, and mutual funds of all types. Stock owners can for the first time enjoy the security of a true limited recourse loan where their shares remain in their own title and account, with a simple lien on the account until it is paid off. Interest rates are currently around 4.35%, and there are no prepayment penalties. The loans can be structured as either callable or non-callable, depending on client preferences and other factors. And if it becomes necessary to default on the interest-only monthly payments, the the put option can be exercised with Premier HedgeLoan to limit lender recourse in most cases to the surrender of the underlying securities. "We've tried to create a loan that provides maximum liquidity but also maximum security and flexibility to our clients", said Stafford. HedgeLender Vice President Fred Wahler added that "This is our most secure loan product to date. In fact, we think it might be seen by some as a virtual 'safe harbor' between the two classic investor choices of doing nothing or dumping the shares on the market at today’s fire-sale prices." Unlike the transfer-of-title loans that HedgeLender facilitated in the past, it today only processes institutionally managed, stay-in-account-and title loans. There are no up-front fees. Investors can restructure their debt, fund current expenses, pay off taxes, or take advantage of today's unprecedented investment opportunities "all with a flexibly constructed securities-backed loan operated by a major U.S. brokerage and banking firm" said Wahler. The company expects Premier HedgeLoan to be especially attractive to real estate investors who have faced obstacles in locating suitable financing even as real estate bargains abound. For more information please visit http://www.hedgelender.com. For further information please contact: ### |
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