Beneficient, a technology-enabled financial services holding company that provides liquidity and related trust and custody services to holders of alternative assets, through an indirect subsidiary, entered into and closed on a $25 million three-year term loan financing with HH-BDH (Hicks), an entity associated with Tom Hicks, a member of Beneficient’s board of directors. The company plans to utilize the proceeds to repay certain of its outstanding obligations, fund product distribution and provide additional working capital.
The three-year term loan is secured by various assets owned by Beneficient and related entities. Borrowings under the credit agreement will bear interest calculated according to a base rate, an adjusted term SOFR rate or an adjusted daily simple SOFR rate, at the company’s election. The company elected the option of adjusted daily simple SOFR + 6.5% for the first two years and adjusted daily simple SOFR + 5.5% for the third year, with interest payable monthly. In addition, the terms of the loan include a prepayment fee if all or any portion of the loan principal is paid back prior to two years following the closing date. Hicks received funding for the term loan financing through a loan from an unaffiliated financial institution.
“On behalf of the board of directors we want to thank Mr. Hicks for his support and contributions as a long-time member of our board,” Brad Heppner, CEO and chairman of Beneficient, said. “We continue to make progress in our efforts to position the business for growth and this financing will contribute to the execution of our business plan as we work to create value for our shareholders,” he added.
“I am deeply committed to the company’s mission to democratize the alternative asset market and generate significant value for our stakeholders,” Hicks, chairman, founder, and partner of Hicks Holdings, said. “My efforts to help facilitate this financing demonstrate my confidence in the team and Beneficient’s unique business model and the opportunities to build long-term value.”
