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Stock Loan Securities Finance The
HedgeLoanŽ Way:
How We Developed Our Business Philosophy
HedgeLender was founded by Daniel W. Stafford
in 1997 while working for the U.S. Department of Commerce, International Trade Administration. It opened its doors first as as an ethics-in-business
membership organization for the private placement funding industry on the newly emerging Internet, SAS, named
after his father, Samuel A. Stafford, a respected journalist in Washington D.C. who had passed away in 1995. It soon became
HedgeLender Corporation, with an office at Two World Trade Center, New York, until the terrorist attacks of 9/11.. A secretary, Tatiana Ryjova, died in the attacks
After moving to Reston, Va., HedgeLender trademarked the term "HedgeLoan", and
focused entirely on innovative, secure, flexible hedged portfolio stock loans that put
regulatory compliance and personalized customer attention first - the values Samuel Stafford espoused. In January of 2006 the company became HedgeLender LLC, with Daniel W.
Stafford and Fred R. Wahler as principals. HedgeLender's original offices in
Reston, Virginia were transferred to the
financial district of Philadelphia, Pennsylvania on Market St., and then up to Two Penn Center.
HedgeLender has added more HedgeLoan products
every year, what we refer to as "HedgeLoan-Certified" stock loan structures meeting several key standards of excellence that must be met if a loan service is to be allowed to continue being offered to our clients. Today, stock loan finance from HedgeLender
covers all types of stocks, including those traditionally not eligible for stock-secured loans.
Stock loan financing during all conditions. During the recent financial crisis on Wall Street, HedgeLender's funding programs remained healthy and attractive, since they are untied to movements in the market and not a credit facility tied to credit markets.
Our
Stock Loan Securities Finance Objectives:
HedgeLender coined the term "hedge loan" and
created the registered trademark "HedgeLoan", which describes a hedged portfolio stock loan
securities finance product. Our HedgeLoan, according to the U.S. Patent and Trademark Office
(PTO), "is a loan product that uses one of several methods to "hedge" or
reduce risk of potential loss by lender who holds the portfolio of stocks
that is contractually and/or beneficially owned by the borrower" for the
duration of the loan term. We have held this registration since 2001.
Early on, Hedgelender created its
HedgeLoan-Certification system to define the kind of stock loan products
we wanted to bring to our customer. These stock-secured loan products had
to meet several standards for performance, security, management, and
borrower benefit. A HedgeLoan-certified loan product is one that we have
tested over time, researched, and examined until we have been satisfied
that it is a form of securities finance that we can deliver with
confidence to our valued clients. It is constantly evaluated: A
HedgeLoan-certified loan product doesn't earn this status in perpetuity.
We continually evaluate performance, and if for any reason it does not
live up to these standards, that loan program is no longer offered by
HedgeLender.
The Ready Advantage of HedgeLender Stock Loans and
Securities Finance Concepts:
HedgeLender in this way
provides a "One-Stop Stock Loan Shop" approach that brings together
the very best stock loan structures in the industry, featuring the most
competitive securities finance proposals and quotes. We monitor the
performance, compliance status, and value of every program we offer, and
we ensure that all types of stock owner's preferences and priorities can
be met. HedgeLender has a stock loan program for:
- Borrowers who need a low-interest loan with quarterly
interest payments only.
- "Insider" share owners who are under DRIP and/or other
restrictions
- Owners of shares trading on UK, Australia, Israel, Japan, India, Canada, or Korea exchanges.
- Investors who believe their shares will rise in value
during the stock loan term
- Investors who require maximum loan-to-value and
maximum cash
- Margin account holders who are facing a possible margin
call
- Employee stock options holders who would like to flip
them into stocks and HedgeLoan stock loan securities finance
- Those who need to restructure their
debt using our stock loan cash
- Companies looking for a way to bind shareholder
loyalty while using an alternative to PIPE
financing
- Investors who want a stock loan where the shares stay
in their own account at a top brokerage firm for the duration.
HedgeLender will continue to bring the best private
placement stock-secured loan products to market and will stay on top of
those products to ensure they meet our standards. In the rare case that they fail to meet those standards, they
are dropped from our certification process and in this way we can continue
to be an active partner in our clients' securities finance plans.
Want more information? Please visit
our HedgeLender home page for more
information on our HedgeLoan stock
loan program.
Get a
stock loan quote today to see what your stocks qualify for.
(There's no obligation and your information is held in the strictest
confidence). Or write us by
e-mail with your questions. Or call us at 1-877-345-0008 at any time.
We sincerely look forward to introducing you to the
Hedgelender difference.
HedgeLender LLC
Securities Finance Services
Stock Loan Answers - Answers to Common Questions About Our HedgeLoan Program
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