SBLC Funding : Treasury Strip Funding

Treasury Strip Funding By Mountain States Lending

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Mountain States Lending can facilitate funding against your Treasury Strips.

Commercial and Business Funding Opportunities

Separate Trading of Registered Interest and Principal Securities (STRIPS) are T-Notes or T-Bonds whose interest and principal portions of the security have been "stripped" or separated. These Treasury Strips may then be sold separately in the secondary market, subject to Rule 144A.

The government does not directly issue STRIPS; they are formed by investment banks or brokerage firms, but the government does register STRIPS in its book-entry system. They cannot be bought through Treasury Direct, but only through a broker.

General Parameters:

• Prefer maturity date to be within 14 to 16 years.
• Typically can fund 90% to 92% of face value less costs of funds
  
• Minimum face value of $50M ($20M by exception only).
• Terms typically 5 years at 12 month LIBOR plus .5% to plus 2.0%.

For more information on this sophisticated funding strategy, please contact Mountain States Lending, please call or e-mail us at:

    Mountain States Lending        Office: 303-740-7724
    7435 E. Peakview Ave.           Fax     303-740-7950
    Englewood, CO 80111            e-mail  mark@mountainstateslending.com

    Mark E. Massa
    President