|
PureBytes Links
Trading Reference Links
|
JER3CUBE@xxxxxxx wrote:
>
> In a message dated 97-10-04 13:42:10 EDT, rcbond@xxxxxxxx writes:
>
> <<
> Forgive a fringe question. Bridge Loans for IPO situation.
>
> I have been approached about a bridge loan that gives stock and
> 12%interest for
> a 120 day loan, and lets you buy stock at less than the going rate , and
> gives you
> an amount of stock equal to your loan ( restricted for 2 years )
>
> Is this the way bridge loans work??
> Sounds to good -
>
> Anyone with experience along these lines.?
> >>
>
> AND, if you think that's a "good deal"...I have this BRIDGE in Brooklyn
> that I'll SELL you below cost on a Lease/purchase agreement and only
> 15%....and you buy it below the orginal construction COST.
> We'll call it a "bridge" loan...o.k. ??
>
> Are you interested?
>
> GerryB/jer33:3
> learner/teacher
Hey there,
Regarding the "Bridge Loan", this type of transaction is typical in many
situations, however, your main concern should be the true value of the
company your lending the money to, and its real potential. You should
inquire about who is underwriting the IPO and discuss this with them. If
the borrower is unwilling to let you do your "blue sky" investigation,
WATCH OUT; your 120-day loan could turn out to be a 120 month loan or a
non-refundable loan, which is even worse.
Chances are this will turn out to be a very risky situation. If they
have assets, have a product, are about to get mucho cash from the public
offering, what is the trouble with their current bank?
Bridge Loans are a standard form of lending and can carry many
different options, but as in any business venture, you should ask the
question: what is behind the company? and what are my chances of
repayment?
Good luck,
jdfo
jdfo
|