MAGOP CODE MAGOP/FP/REQ/16JUL18A
PRODUCT TYPE
  • Bank Issued MTN (no corporate paper)
  • U.S. Treasuries (at least 3% net)
  • Western European Treasuries
DESCRIPTION WANTED: Discounted MTN and Treasuries
COUPON Varies
CURRENCY USD or EUR
PRICE Price needs to be discounted enough so that the buyer, the buyer's exit, and seller gets the price the each need and the the intermediaries can also be paid.
TOTAL CONTRACT AMOUNT As agreed
TRANCHES As agreed
COMMISSIONS As agreed
ENGAGEMENT D2D, B2B, or Euroclear.
MODE DVP
SETTLEMENT Same day
DELIVERY DTC/DTCC
PAYMENT MT103, domestic wire, or as agreed
PROCEDURE
  1. Seller provides the following:
    1. Current custodial account statement, title page, and/or securities desk information,
    2. Asking price.
  2. Once exits are confirmed, Buyer issues to seller LOI confirming readiness to accept delivery of paper.
  3. Any contracts are drafted with the procedures as agreed.
  4. Any/all contracts/invoice between buyer and seller is signed.
  5. Seller delivers instrument(s) to bank/brokerage house via as agreed free and clear with free delivery for Buyer's bank/brokerage's compliance and verification.
  6. After verification paper is delivered into Buyer's account and Buyer initiates payments to Seller and intermediaries as agreed.
  7. Additional tranches continue as agreed.
NOTES
  • Buyer will not initiate due diligence, research current market values, and confirm exit buyers until current Seller ownership is confirmed and all parties in the middle are on the same page.
  • These are private transactions between two parties that have both already passed compliance in order to possess pre-established trade accounts with their  banking and/or brokerage institutions.
  • Both North American and European banking are available.

 

OPTION PAPER

Sellers that own no title but actually possess a real option to sell on behalf of a titleholder are welcomed when able to transact in either of the following two conditions:

A)  Buyer is allowed to pay for the option at the same time as paper is being paid for within the settlement process.

OR

B) Seller pays for the option and enters into a joint venture (JV) agreement with the buyer to split profits as agreed.

MAGOP RELATIONSHIP: Absolutely direct to the Buyer. 

 

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