Our approach
Prefunded, non-recourse facilities against listed shares, executed through licensed broker-dealers, in a sequence set out in four documents.
How it works
- 01
Agreements signed
The Facility Agreement and the Promissory Note are signed first.
- 02
An account in your own name
You open an account in your own name at the designated broker-dealer. Silo’s capital is deposited into it, where you can see it.
- 03
Shares deposited
Your shares are deposited and held under the Collateral Management Agreement.
- 04
Closing Statement signed
You sign the Closing Statement and the release of funds is instructed.
Four documents: Facility Agreement, Collateral Management Agreement, Promissory Note, Closing Statement.
Parameters
- Facility size
- USD 1M–150M+
- Collateral
- Listed equity, listed for at least three months; restricted or control shares case by case
- Documentation
- Facility Agreement, Collateral Management Agreement, Promissory Note, Closing Statement
- Proceeds
- Personal, strategic or corporate
- Collateral held
- In an account in the borrower’s name at a licensed broker-dealer
Risks
If the share price falls, what happens and when is set out in advance in the facility documents.
Silo manages its lending exposure throughout the facility term, including through hedging and collateral use permitted by the transaction documents. Those documents define the borrower’s collateral rights and conditions for repayment and return.
Non-recourse means recourse is limited to the shares pledged for the facility: no personal or corporate liability beyond them, and no collateral taken beyond them.
Nothing on this website is an offer, solicitation, recommendation or commitment. Every facility is subject to Silo’s review, diligence, approval, jurisdictional analysis, compliance review and definitive documentation.
Twelve questions to put to any securities-backed lenderThe four documents
Full draft documents are provided to your counsel for review before signing. Documentation is prepared by Silo’s in-house counsel, with outside law firms retained in the relevant jurisdictions.
- 01
Facility Agreement
Between you and the Silo lending entity. Signed, with the Promissory Note, before any shares are deposited.
- 02
Promissory Note
Signed by you in favor of the Silo lending entity, alongside the Facility Agreement.
- 03
Collateral Management Agreement
Between you, Silo and the designated broker-dealer. Executed once the shares are deposited; the collateral parameters are activated under it.
- 04
Closing Statement
Issued and signed by you. On your signature, release of funds is instructed immediately; any further tranches follow the Facility Agreement.
The four documents of a structured facility, and what each one does