ESOP Notes: how does one buy them?

[Guest Vladimir M]

Season's Greetings!

I have two questions regarding the so-called "ESOP Notes."

1. I understand that the ESOP Notes carry a floating interest rate; this should protect the note holder against interest rate risk. Is my understanding correct? [if the rate were fixed, given that the notes have a 60 year maturity, the interest rate risk would be huge.]

2. It seems that Ford Motor Credit, GE Capital, ITT Financial and others offer ESOP notes. However, at least these three companies make no mention whatsoever of ESOP notes on their web sites. Where can I find more information on the practical aspects of buying ESOP notes with the proceeds of an ESOP stock sale?

Thank you in advance for your help.

Vladimir M

[Guest David Thomas]

Originally posted by Vladimir M

Season's Greetings!

2. It seems that Ford Motor Credit, GE Capital, ITT Financial and others offer ESOP notes. However, at least these three companies make no mention whatsoever of ESOP notes on their web sites. Where can I find more information on the practical aspects of buying ESOP notes with the proceeds of an ESOP stock sale?

Thank you in advance for your help.

Vladimir M

I'd suggest calling Bruce Bickley of PaineWebber. He probably does more investment of 1042 rollover proceeds than anyone else in the country. His number is 404-760-3085.

(please note that I don't get a commission for giving his name, in fact, I didn't even get a holiday card this year).

[Guest kbutcher]

If this is the David Thomas that I know, I am not surprised that he did not get a Holiday Card. I don't know if the PaineWebber group does the biggest volume, but they definitely know their business and should be able to provide answers to your question. Note: We sent David a Holiday Card so don't feel too bad for him and come to think of it, I don't recall seeing a card from David!

KB

[Guest Vladimir M]

Thank you for your replies - I did find some info on the PW web page.

Happy New Year!