Beneficient (BENF): debt financing — Beneficient expects Q1 goodwill impairment and $50-60M write-down; enters $25M related-party loan

Beneficient

Expects significant goodwill impairment from interim analysis triggered by stock price decline.
Expects $50-60M write-down on net asset value of interests in GWG Wind Down Trust as of Sep 30, 2023.
Entered $25M term loan with HH-BDH LLC (affiliate of board member Thomas O. Hicks) on Oct 19, 2023.
Loan interest at Base+2.50% or SOFR+3.50%; additional 2-3% fee to Hicks Holdings until maturity Oct 2026.
Loan secured by substantially all assets of borrower and equity interests; related-party transaction.

item 1.01 item 2.02 item 2.03 item 3.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Beneficient incurred term loan of $25.0 million with HH-BDH LLC at Base Rate plus 2.50% or Adjusted Term SOFR plus 3.50% or Adjusted Daily Simple S maturing October 19, 2026.

Instrument: term loan
Principal: $25.0 million
Counterparty: HH-BDH LLC
Rate: Base Rate plus 2.50% or Adjusted Term SOFR plus 3.50% or Adjusted Daily Simple S
Maturity: October 19, 2026
Event: incurrence

Exact text from the filing

The Credit Agreement provides for a three-year term loan in the aggregate principal amount of $25.0 million

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Earnings Releases SEC 8-K Item 2.02 confidence 0.93

Beneficient reported preliminary financial results for the three months ended September 30, 2023.

Period: the three months ended September 30, 2023
Result: preliminary results

Exact text from the filing

The Company is in the process of its quarter-end closing procedures for the three and six months ended September 30, 2023. While conducting its quarter-end closing procedures, the Company identified the following items that it preliminarily expects to record for the quarter ended September 30, 2023: (i) a significant impairment of goodwill resulting from an interim goodwill impairment analysis

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Beneficient entered into Credit Agreement with HH-BDH LLC valued at $25.0 million (effective 2023-10-19).

Action: entry
Agreement: credit facility
Counterparty: HH-BDH LLC
Value: $25.0 million
Effective: 2023-10-19

Exact text from the filing

On October 19, 2023, Beneficient Financing, L.L.C. (the “Borrower”), a wholly owned subsidiary of Beneficient, a Nevada corporation (the “Company”), and Beneficient Company Holdings, L.P., as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”), entered into a Credit and Guaranty Agreement (the “Credit Agreement”) with HH-BDH LLC (the “Lender”), as administrative agent.

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10 debt financings filed in the last 30 days. Browse all debt financings →

Beneficient filing history →

Source: SEC EDGAR

accession 0001193125-23-259619

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