International Securities Finance

International (Non-U.S.) LeverageLines & Clients

International LeverageLine

A Credit Line for Non-U. S. Securities Collateral

Around the world the U. S. financial markets are recognized even today for their superior innovation and competitive rates and terms. In most cases, a line of credit from a major public institution outside of the U. S. is much more expensive, slower to close, with much higher interest rates and much lower loan-to-value. Bureaucracy, fees, delays, high documentation — the list goes on.

A. B. Nicholas has developed a way to combine the best of both worlds through our partnership with a major U. S.-based brokerage/bank: The convenience of keeping your securities in your own country and account, with the great features of our market-best LeverageLine if your portfolio qualifies.

We serve the following non-U. S. markets:

  1. Hong Kong
  2. Japan
  3. Sinagpore
  4. Western Europe 
  5. Canada
  6. Australia
  7. (All countries) American Depository Receipts (ADR)

We sometimes get transactions that are relatively large in your local (non-U.S.) terms. Keep in mind that your loan is with a major, well-known U.S. institution with HQ in Switzerland and the U. S., disclosed to you in full with your term sheet.

The same rate of interest applies to any draw amount with this program. The higher your line of credit, the lower your line for all draw amounts. If the rate is 1.5%, it applies to a drawdown of $5 million as well as $500.

Repayment is interest-only required, and you can pay down your principal at any time without penalty. Your line is a revolving line of credit, like a credit card, so there is no maturity date and you can close your line at any time by simply paying off whatever you owe. Your are always free to liquidate shares if you choose to pay what you owe.

So there it is: the security and the many benefits of a U.S.-based loan that still allows you to keep your stock without having to sell it to obtain funding. Flexibility without dependence on credit score. No restriction on use of funds except that they cannot be used to purchase more marginable securities. And quick delivery with the quality and support you’ve come to expect from A. B. Nicholas services, via a major U. S. licensed institution.

Remember please, if you are acting as an intermediary: You must present the actual owner of the securities; we do not accept third parties acting on behalf of the actual client, and passports of the actual client owner are always required with your term sheet request.


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