Institutional Lending Solutions

Securities Based Lending: Stocks, bonds, funds and even some alternative investments can be used as collateral for securities based borrowing. A margin loan from Raymond James offers an easy financing solution that can be used for investments into securities or other uses of capital. A securities based line of credit (“SBL”) from Raymond James Bank can be an ideal and flexible capital source that is low-cost and easy to establish and maintain. The proceeds from an SBL cannot be used to purchase or carry margin securities or to repay a margin loan. Executive Consulting of Raymond James is also adept at facilitating more complicated lending situations, including borrowing off a concentrated position, utilizing unconverted Up-C or OP-Units as collateral among other unique circumstances.

Commercial Real Estate Lending: Raymond James Bank offers focused commercial real estate lending programs designed to fill borrowing needs in all 50 states. Solutions include refinancing a current loan, short-term acquisition/bridge financing or term loans. The bank will typically accept a wide array of property types as collateral including multifamily, retail, triple-net leased assets, office, senior housing, data center and self-storage.

Fully-Paid Securities Lending: Investors holding individual, fully-paid stock positions can custody the assets at Raymond James, allow the firm to lend those shares out via Stock Loan, and receive income from the revenue generated through lending the shares. Revenue is typically generated from interest earned on collateral deposited in conjunction with the stock loan along with fees paid by the borrower. Clients typically receive between 50% and 70% of the earnings from the stock loan. The lender’s account continues to reflect the stock position and any dividends that are paid while the stock is being lent are paid to the lender and grossed up for any change in the tax impact of the dividend payment.

A Securities Based Line of Credit (SBLC) or Margin account may not be suitable for all clients and investors. The proceeds from an SBLC cannot be used to purchase or carry margin securities. Raymond James Bank does not accept RJF stock as pledged securities towards an SBLC. Borrowing on an SBLC or Margin account using securities as collateral may involve a high degree of risk including unintended tax consequences and the possible need to sell your holdings, which may lead to a significant impact on long-term investment goals. An investor can lose more funds than he or she deposited in the account. Market conditions can magnify any potential for loss. If the market turns against the client, he or she may be required to quickly deposit additional securities and/or cash in the account(s) or pay down the loan to avoid liquidation. The securities in the Pledged Account(s) may be sold to meet the Collateral or Margin Calls (Calls) and the firm can sell the client’s securities without contacting them. Clients and investors are not entitled to choose which securities or other assets in his or her account are liquidated or sold to meet a Call. The firm can increase its maintenance requirements at any time and is not required to provide advance written notice. Clients and investors are not entitled to an extension of time on Calls. Increased interest rates could also affect LIBOR rates that apply to your SBLC or Margin account causing the cost of the credit line to increase significantly. The interest rates charged for an SBLC are determined by the market value of pledged assets and the net value of the client’s Capital Access account. The interest rates charged on Margin loans are determined by the amount borrowed. Please visit sec.gov/investor/pubs/margin.htm for additional information. Securities Based Line of Credit provided by Raymond James Bank, N.A. Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are affiliated with Raymond James Bank, N.A., a federally chartered national bank.