SPRINGFIELD, Ohio, Nov. 4, 2016 /PRNewswire/ -- EF Hutton America (symbol: HUTN) announced today that it plans to offer asset-backed notes ("Notes") to qualified accredited investors under an exemption from securities registration pursuant to rule 506(c) of the Securities Act, as amended (the "1933 Act").
The Notes will provide yields that are much higher than bank deposit rates. As of November 3rd, the national average bank rate for 5-year CDs is 0.81% and the average rate for money market accounts is 0.11%, according to Bankrate.com.
The Notes will be backed by assets that are appraised by an independent expert. The Notes are segmented based on priority right to payments and the extent of collateral coverage. Notes with higher payment priority and asset value coverage, therefore less risk, will yield less than Notes with lower payment priority. Rates are expended to range from 5% to 12%, depending upon tranche. Minimum Note purchase is $10,000.
In response to investor feedback, all Notes have an inflation protection provision that results in higher yields if inflation increases – up to a cap.
A description of Notes and other details are in the offering memorandum which is available only to qualified accredited investors. There are a limited amount of Notes that will be provided on a first-come, first served basis. Those who believe they qualify as accredited investors should contact firstname.lastname@example.org or go to: www.efhutton.com/securednotes
Accredited Investors are defined under the 1933 Act. It includes those persons who either: (1) have individual income greater than $200,000 or income with a spouse that totals at least $300,000; or (2) net worth of $1,000,000 excluding their primary residence. See Rule 506 of the 1933 Act for a specific definition.
About EF Hutton
EF Hutton is a leader in digital finance and investment services. The company offers innovative financial products such as the "no commission" investments and "no commission" trading, including value-added services such as event-driven investing strategies. EF Hutton provides financial products and services using advanced technology to better serve clients. EF Hutton is a legendary brand in financial services that for 112 years it has been known for its attention to clients. EF Hutton stock is traded under the symbol HUTN. Learn more at www.efhutton.com
Cautionary Note Regarding Forward-Looking Statements. Certain statements contained in this press release that are not historical facts may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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SOURCE EF Hutton