What Do You Need to Send for Indicative Terms?

Three pieces of information, and no more at this stage. The first is the borrowing entity: who will borrow, whether an individual or a company. The second is the issuer and the number of shares to be pledged. The third is a recent depository or brokerage statement showing the holding, such as a CCASS statement for shares held in Hong Kong. With those, Black Haven can prepare indicative terms for a stock loan against the holding. The list is short by design, so the first exchange can stay brief and confidential.

If the indicative terms suit, a term sheet follows, and once it is countersigned the remaining steps run in a fixed order: the KYC questionnaire, then the loan agreement, then the opening of a custody account, a funding notice, the delivery of the shares into the custody account, and funding. The lender’s control over the account takes effect only at the same time as the loan is paid out. Each step is set out in the closing sequence, from term sheet to funding.

The same three items, once the introduction is in place. Black Haven works with wealth managers, private bankers, corporate-finance and M&A advisers, brokers and family offices that introduce a shareholder under a written arrangement: a short introducer agreement is signed before any client is named, and a mutual non-disclosure and non-circumvention agreement is signed before a client is disclosed. After that, the introducer can pass on the borrowing entity, the issuer and number of shares, and the client’s statement, and Black Haven takes the client through indicative terms, structuring and funding, keeping the introducer informed at each stage. The arrangement is described on the referrals page.