I n t e l l i g e n t A l t e r n a t i v e s

Employee Stock Options Programs (ESOPs)

What is the Intelligent Alternative?

Behind the Numbers:

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


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.

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.

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.

Call me Traci Gregory 770.333.4404,
Authorized HedgeLender Agent

or send me an email - traci@tracigregory.com

Copyright © 2008, HedgeLender LLC . All rights reserved.
2 Penn Center Plaza Suite 200 Philadelphia, PA 19102
Accredited Member Better Business Bureau
Licensed as loan broker under the California Finance Lender authority.

Pallas Financier.Com and StockLoansBlog.Com are intellectual properties owned and operated by Traci Gregory

Notice: The information contained within this site is for informational purposes only and does not constitute legal,
tax or investment advise. You are encouraged to seek advice from those licensed professionals on those subject matters.

*Please read the full Disclaimer for definition of "HedgeLoan Certified". Does not imply third-party certification of any kind. Nothing in this page or in any communications with HedgeLender staff or associates should be construed as legal, tax, or investment advice. Please consult a licensed professional in your state or residence for advice on these matters. HedgeLender LLC is a loan brokerage and does not hold, trade, or manage stocks directly. The HedgeLoan nonrecourse stock loan program is not available in Saskatchewan, Canada or in any state or country where structures of this type are prohibited. For more information on HedgeLoan stock loans, licensure, references, funds management, due diligence assistance, stock-secured loan management, nonrecourse stock loan default scenarios, stock lending structures, or any other questions related to the HedgeLoan certification (approval) or application process for our HedgeLoan nonrecourse stock loans, please contact us by e-mail. All users of this website are presumed to have read the full Disclaimer by virtue of their use of this website and agree to hold harmless HedgeLender, its staff and associates for any misrepresentations, statements, or actions carried out without HedgeLender's knowledge or control.