“Private Bond” Issuing System for Corporate Funding
Funding by Custom “Private Bond” Issuing System
Setup of funding by issuing bankable “144-A” private corporate bonds
Many corporations decide to issue and sell their own private “144-A” unregistered bonds as securities to private placement investors, because “buying an instrument” can be more attractive to some investors than making “venture capital investment”. Bonds also enable funding both by selling the bonds, and also by getting loans against them. However, bond purchasers (or lenders) do not “invest” in “bonds” – they fund against the “asset backing” behind the bond.
A successful private placement corporate bond securities offering must show solid asset backing, to protect at least 100% of the purchase price of the bond. A startup company can only demonstrate this capability by arranging and structuring third-party assets, which should be done by licensed certified institutional services.
This service provides all necessary components, including:
- Setting up a customized bond-issuing system for the client company
- Packaging client assets or equity as Backing (for established business)
- Providing third-party tangible assets as Backing (for startup)
- Structuring the bond offering to cover costs of assets from funding
- Customizing Asset Backing section of private placement memorandum (PPM)
- Customizing bond purchase contracts to accommodate structured assets
- Active support to make project documents package “bankable”
- Referral, placement and/or facilitation with potential funding sources
- Transactional support to assist with efficient funding closing
It is possible to complete the documentation and setup stages within 60 days, and to place the client with a funding source and help obtain investment by purchase or loans within another 30 days. Thus, with the cooperation of the client funding results can be achieved within an estimated 90 days.
This capability is provided through Funding Support Services directly with a licensed private banking institution that is also an authorized securities dealer and asset-backing underwriter.
