+613 9849 6203

Equity Lending Facility

Recent Transaction

Loan-Strike-Ratio

Tiered LSR up to 100% provides the shareholders with the ability to make upfront cash contributions and partial repayments during the life of the loan to attract lower interest rates.

 

Interest Rate

Ranging from 3.14 to 11.64%, the tiered interest rate matrix seeks to incentivise cashflow to the business while providing borrowers with maximum flexibility.

Interest Payment Method

Three options:

  • Paid 6-monthly in arrears
  • Pre-paid 12 months in advance
  • Capitalised 6-monthly in arrears

Other features:

  • Open to Self-Managed Super Fund (SMSF) applicants
  • No margin calls
  • Limited recourse
  • Shares under finance locked until settlement
  • No trading of secured shares
  • Early repayments without penalty
  • Partial prepayments to reduce interest

Results

>250

Loans Issued

~$14M

Loan facility

~$4M

Cash flow from options exercise

  • 250 loans issued at ~$14M for ASX-listed company
  • Underpinned stability of market pricing of underlying securities and encouraged ~$4M worth of cash-based options exercise
  • Supported uptake of >95% of offer
  • 3-year loan term
  • Flexible interest payment options
  • Ability to payout loan in full, prior to expiry, providing further early capital support to the issuer
  • Issuer earns interest income from ELF borrowers at attractive interest rates
  • Mitigates downside risk to the investor
  • Ability to liquidate securities that are not paid in full by the borrower
  • Application process closed within 1 month