- 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 £4.9M
- Share Value: Circa £7.6M
- 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.
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.
Important: The value of shares and other investments can fall as well as rise. Where borrowing is secured against investments, a fall in the value of the underlying assets may result in additional collateral requirements, margin calls or the sale of pledged assets, depending on the terms of the facility. Failure to meet repayment obligations may result in the loss of secured assets.
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Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
