CGP Related Products

 

Through one or more of its subsidiary companies, Capital Growth Planning, Inc., ("CGP") offers the following financial structures, products, programs, and Collateral Enhancement structures.  The following will provide additional information regarding CGP's Collateral Enhancement Structures and its  LIBACSM and LICBS programs.  The majority of these financial strategies are used in a lending transaction, whereby the borrower can not provide a compenstating security instrument to protect the risk of default on an approved financing:

 

Collateral Enhancement Structures

Under today’s restrictive lending and regulatory environment, many financial institutions, including institutional lenders in the U.S. and internationally, require collateral enhancements to occur to allow for the process of lending to be approved. To assist financial institutions, institutional lenders, and other private investors or lenders in this market, CGP, through its partners,  have created several lending strategies using its collateral enhancement products.  These products include traditional bank instruments and or other recognized collateral.   These collateral enhancement products will usually allow the lending process to move forward more smoothly, depending on the target Financing or project.  By intergrating certain Collateral Enchancement products, Capital Growth Planning, Inc. (“CGP”), its subsidiaries and affiliates, and its collateral enhancement partners, have created new “structured” Credit Enhancement lending strategies. These strategies have been created to provide specific financing and investment banking services to approved  financial related transactions. For more information on these programs, you may also contact the Company directly.

 

 Life Insurance “Backed” Collateral (“LIBACSM”)

The LIBACSM business process (Patent Pending – U.S. Serial No. 12/322,259) has significant investment banking, lending and capital formation applications to protect the investment or lending process. Life Insurance “Backed” Collateral is a life insurance contract based "structured" product that offers a “Fully-Funded” primary or secondary collateral instrument to nearly any type of investment transaction, where investment principal must be protected from loss, (or if debt) self-liquidating of that debt would occur.  Investments made under the proprietary structure are backed by a Portfolio of LIBACSM Assets that are created with funds invested (or lent) and held in a LIBACSM LLC or Indenture Trust. In most cases up to 50% of the funds raised, lent, or placed (gross amount invested) are used to create the portfolio of LIBACSM Assets in face amounts equal to 100% of the invested, with the balance of 50% (less financing or offering costs, when applicable) to be used to fund the investment target or project loan (normally referred to as the Issuer or borrower). Structures have been designed for Direct Purchase, Unit Offerings, Equity Offerings, Private Investment in Public Equity (“PIPE”), Debt Structures (including Notes, Loans or Bonds), Endowments Structures, Fund Structures, Sovereign Nation Financing and several other new structures currently being modeled. Brochures regarding most of these structures are available for review or request. Several additional Products not listed are currently in the design stage. If additional due diligence information on these structured products are needed, please contact the Company directly and additional information will be sent to you after the execution of an appropriate Non-disclosure Agreement is completed.

 

The LIBACSM Plus Debt Financing Program

Also built from the LIBACSM business process, CGP recently created a new interest bearing LIBACSM debt structure, (“LIBACSM Plus”) utilizing a Portfolio of LIBACSM Assets to deliver to the lender (usually a bank or private lender), interest payments and a self-liquidation of principal feature, each guaranteed by contract and paid over the term of the Debenture.  Managed through an Indenture Trust, the Debenture provides a financing mechanism for borrowers who may lack the necessary credit or revenues to qualify for traditional financing. The LIBACSM Plus loan program addresses, among other things, the lender or investor’s concerns about the borrower’s ability to perform under the loan (Debenture). Because the LIBACSM Assets generate enough revenues with which to make interest payments and principal payments over the term of the note, LIBACSM Plus makes for a highly suitable self-liquidating loan structure, especially when combined with other collateral instruments.  LIBACSM Plus is particularly useful for funding sources (institutional lenders) that require an alternative source of payment for the loan or for banks looking to fund loans that are FDIC compliant. For FDIC insured Banks, a LIBACSM Plus loan, when structured correctly, will virtually guarantee loan performance, thus it will not affect the bank’s future CAMELS rating, regardless of the future performance of the borrower, for that loan. This is particularly important under new federal lending guidelines. 

LIBACSM Plus structures are best suited for longer term lending transactions (20 to 30 years) using institutional finance sources and/or bank lending. Shorter term structures may be designed, but additional financial products must be applied to the transaction, increasing its cost. Under most LIBACSM Plus structures, up to 75% (or more) of funds borrowed are used to acquire the self-liquidating, interest paying LIBACSM Assets, leaving 25% (or less) to finance the Borrower’s business plan or lending needs. A 75% / 25% structured loan would provide full self-liquidation of principal, along with a "base line" 3% interest carry, each guaranteed for the term of the Debenture (loan).  Management believes this structure will allow lending to occur for companies that would otherwise go unfunded.  For brochures or customized structures using LIBACSM Plus, please conatct the Company.
 
 

Life Insurance “Contract Backed” Securities (“LICBS”) 

LICBS products are built from the LIBACSM business process, offering a new high “yield” monetized life insurance based (structured life settlement) financial program with numerous investment product applications that may be directed to and utilized in the institutional and/or banking markets. LICBS is a new life insurance based product (asset) that delivers a fully funded “Paid” current yield, well above current market rates on financial products with similarly “rated” risk.  The “Yield (income) and “Principal” (return of investment) on this product is “Backed” by contracts (held in Trusts) issued by U.S. Life Insurance Companies and Banks having at least a Standard & Poor’s rating (at issuance) of “A” or better, depending on the product’s rating requirements. CGP is exclusively offering to qualified financial institutions this new yield product in an investment partnership program that may provide financial institutions increased yield leverage to attract or retain customers by providing a higher yielding “Insured” Cash Management, Money Market, and/or Certificates of Deposit products. Other investment and product benefits of Life Insurance “Contract-Backed” Securities are as follows:

  • LICBS Assets may provide a current annual Yield (income) of no less than 6.00%, paid on a quarterly basis. . .
  • Taxable equivalent Yields of 8.50% to 9.00% for 10 years or more (based on composite age/gender of the Insured’s). . .
  • Targeted Yields may be used to service products of lower yields, providing institutions increased profit and/or deposit(s) leverage. . .
  • LICBS Assets offers above average market Yields, when compared to other similar S&P Rated investment structures. . .
  • Average maturities of LICBS Assets are 15 years (replacement assets may be structured for early maturities). . . 


Financial Institution & Other Banking Products

In addition to the Products listed above, CGP may be able to provide a direct Collateral Instruments to allow for Investments or lending to be accomplished.  For more information on these Collateral Financial Products, please contact the Company.

 

Principal Protected FUND Products

CGP intends to also offer a series of new investment “FUND” products using the Company’s LIBACSM “Insured” Delaware Business Trust structure (see LIBACSM “Insured” Fund Delaware Business Trust Structure above).  These new “Insured” FUND products will be offered through licensed professionals in conjunction with CGP’s wealth management products &/or offices (to be opened), in coordination with its planned bank affiliate. These “Insured” FUND products will be managed by CGP.

 

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