STRUCTURED FINANCE PROGRAMS
$10,000,000 - $10,000,000,000**
This program provides leverage capital for a variety of investment grade and principal protected funding transactions. These include but are not limited to:
1. Investment programs / trading platforms / matched trading.
2. Funding against or monetization of investment grade notes.
3. Capital funding secured by documentary letters of credit.
4. Commercial projects that are backed by financial guarantee bonds.
5. Credit / Withdrawal facilities where permitted investments are defined as replacement collateral acceptable to the financial institution.
6. Bridge and Mezzanine financing where there is an acceptable investment grade takeout.
7. Balance sheet enhancements including show money, proofs of funds, etc.
The key principles to remember when considering use of this type of program & capital are:
1. The capital funds must remain in an investment grade or principal protected position.
2. The contemplated transaction must be legal.
3. The Client must have the ability to cover the initial closing costs related to the capital transaction.
4. We can place capital in almost any domestic or international financial institution that is rated investment grade (A1/P1 or better).
5. If you have a foreign corporation the capital can be placed in an account in your name.
IFC, US Capital’s parent company, includes its own capital (&/or assets), individual, private, and institutional capital. Our minimum size transaction is $5.0 Million to $500 Million.
The funds procured for each transaction are sourced from a large private trust in Switzerland via Credit Suisse. The basic description is the rate is annually, payable at the first month and then monthly for a 366 day contract for funds up to $100M USD. For funds above $100M, the rate is lower. The Funds are placed either into Credit Suisse or an agreed upon designated bank (top 10 to top 25) once the institution agrees to guarantee the return of funds. US operations require an intermediary step, as CS will not allow US entities. The 5% is placed in escrow (of the Client’s choosing) and remains in escrow until the corporate recipient account is set-up and the funds are placed.
The question on risk assessment for us is: what guarantees that the cash will be released free and clear at the end of the term, or after completion of any renewal cycles? We look for bank level responsibility, a contractual commitment based solely on corporate responsibility by itself is not sufficient, there would need to be another commitment mechanism in place. This is an important issue, that we are also looking to be practical about this.
NOTE: Clients are not asked to place funds into escrow prior to a full review of the transaction, and agreements (including escrow instructions) and execution of said agreements.
All that is required to initiate a transaction or further discussion of the deal terms is a simple (redacted if so desired) proof of the clients ability to put 5 points into the transaction. This could be in the form of a bank statement, brokerage statement, etc.
The funds do not need to be moved or segregated.
Once you confirm this structure is workable for you, a formal agreement will commence.