How a US Company Secured £4.9M Lending Against Shares

Key Details:

• Client: US-based company
• Challenge: Raising liquidity against a concentrated listed equity position held through a corporate structure with international beneficial ownership
• Loan Amount: Circa £4.9 million
• Share Value: Circa £7.6 million
• Loan-to-Value: Approximately 65%

A US-based company approached Enness Global seeking to raise capital against a concentrated shareholding in a major US-listed company. The funding was required to support the acquisition of commercial land in the United States, and the client required a financing solution capable of accommodating both its corporate ownership structure and the concentrated nature of the underlying investment.

The transaction presented several complexities. The borrowing entity was a corporate structure with ultimate beneficial owners based in South Korea, requiring careful coordination of lender due diligence, security arrangements and account opening procedures. In addition, the concentrated equity position limited the number of lenders willing to consider the transaction, making specialist lender selection an important part of the process.

Enness Global introduced the client to a specialist lender experienced in securities-backed lending for corporate borrowers. A line of credit was arranged at approximately 65% loan-to-value, subject to lender criteria, with interest payable only on funds drawn. The structure enabled the client to access liquidity while retaining ownership of the underlying shareholding and provided flexibility to draw funds as required.

This case demonstrates how specialist securities-backed lending can provide corporate borrowers with access to liquidity against concentrated listed equity holdings, particularly where complex ownership structures or international elements fall outside conventional lending criteria.

Disclaimer

This case study is provided for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, asset suitability and lender criteria. Loan amounts, loan-to-value ratios and lending structures are indicative only and may vary depending on individual circumstances and market conditions. Enness Global acts as a credit broker and not as a lender.

Regulatory Notice

Securities-backed lending may fall outside FCA regulation. Regulatory treatment depends on the structure of the transaction, the borrower and the assets used as security.

Risk Warning

Borrowing secured against investments carries risk. If the value of pledged assets falls, additional collateral or partial repayment may be required. Failure to meet repayment obligations could result in the sale or loss of the secured assets.