- Security Value: £3 million+
- Loan Amount: £1.7 million+
- LTV: 55%
- Share Type: UK-listed stock
Enness was approached by an entrepreneur based in London who was looking to create liquidity to invest in a new business venture. The client was the founder and CEO of a global manufacturing company listed on the London Stock Exchange and had accumulated a significant shareholding in the business since founding and floating the company almost a decade earlier.
The client had previously considered a Lombard loan through their private bank but found that the loan-to-value available against their concentrated shareholding was relatively limited. Enness reviewed the client’s wider circumstances and identified specialist lenders able to consider financing against a single listed stock position.
Single-stock lending can provide shareholders with access to liquidity without requiring them to immediately sell a concentrated holding. However, these facilities are typically more complex to arrange than conventional securities-backed lending because lenders assess factors including the underlying company, share liquidity, concentration of the position and the borrower’s overall circumstances.
Enness approached specialist lenders experienced in structuring facilities against concentrated positions in listed companies. Indicative terms were presented to the client within 72 hours of the initial meeting, allowing them to assess the available options and determine whether the proposed structure met their requirements.
Enness subsequently secured a facility of more than £1.7 million against a shareholding valued at more than £3 million, representing an LTV of 55%. The facility provided the client with liquidity to pursue their new venture while allowing them to retain their existing shareholding, subject to the agreed lending structure and terms.
The transaction was completed within four weeks of the initial meeting, demonstrating the relevance of specialist lender access when considering securities-backed lending against concentrated shareholdings.
This case highlights how a concentrated position in a UK-listed company can potentially be used to access liquidity without an immediate sale of the underlying shares. Specialist securities-backed lending can provide an alternative to a conventional Lombard facility where a borrower requires a higher LTV or a more bespoke structure, subject to lender criteria.
Enness works with a network of specialist lenders experienced in Lombard loans and single-stock lending. If you hold a significant position in a listed company or investment portfolio and are looking to raise liquidity, speak to a mortgage specialist to discuss your circumstances.
Securities-Backed Lending Disclaimer: Enness does not provide advice on Securities-Backed Lending or investments. Lender introductions are unregulated. Terms and availability are subject to the individual circumstances, underlying securities and lender criteria.
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