Suzie Shareholder owns a horse farm (where she raises friesians) and has a note against her livestock, equipment and most of her other farm assets at ten percent per annum.

She needs expansion capital and owns 100,000 shares of Mistress of the Universe stock worth $10 a share, but she has a good feeling about that business this year and expects the stock value to really climb. She wouldn't think of selling it, even though it has gained in value since she bought it.

Consider

With a loan against the Mistress of the Universe Stock @ 6.99% interest, on a fixed note, she can refinance the farm, get capital for more of those gorgeous horses, take the horses to more shows, perhaps even expand the stud work they do now, AND pay off the liens against all other assets. If MOTU goes up, she can participate in the upside, and if it goes down, she can exercise the right to default on the loan. The good news? Either way, she keeps the capital she needed for expanding Friesian Stables.

As they say, the devil is in the details . . . so here is a breakdown of Suzie's MOTU stock transaction and how it helped her expand Friesian Stables:

• Suzie's note against Friesian Stables: $500,000 @ 10% interest.
• Working capital requirement: $200,000. Total needed: $700,000.
• Proceeds from a 75% LTV loan against her $1MM of MOTU stock: $750,000.
• She saves $15,000 per year in interest expense on the existing $500,000 note on the farm
• AND, she can invest $200,000 in new land, supplies, etc.

Call me Traci Gregory 678.677.7669

or send me an email - traci@tracigregory.com