Carl Icahn has renegotiated loan terms with a group of banks just months after a report by short seller Hindenburg Research sent shares in his investment firm tanking.
(Bloomberg) — Carl Icahn has renegotiated loan terms with a group of banks just months after a report by short seller Hindenburg Research sent shares in his investment firm tanking.
The activist investor has consolidated all his borrowing under a new three-year term loan, according to a Securities and Exchange Commission filing on Monday. It extends the maturity of previous loans with the banks and includes amendments to certain covenants.
Icahn Enterprises rose as much as 19% on the news, and was trading up 18% to $34.06 at 10:26 a.m. in New York.
The new agreement unties Icahn’s loans from the share price performance of Icahn Enterprises LP. Shares in his firm have fallen more than a third this year, largely on the back of a Hindenburg report in May that accused the billionaire activist of costly missteps.
Icahn’s new loan is secured by 320 million IEP depositary units and $2 billion of interests in private investment funds managed by Icahn Enterprises. Unlike under the previous loan, any margin call will not be tied to the market price of the depositary units. The Wall Street Journal reported details of the agreement earlier on Monday.
A principal repayment of $500 million is now due on or before Sept. 1, according to the filing, followed by quarterly sums of $87.5 million beginning in September 2024 and a final amount of $2.5 billion at the end of the term.
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