Robinhood Securities (RHS), a California-based
broker-dealer, for the second time has amended its credit score settlement with a financial institution
syndicate led by JP Morgan Chase and now has
entry to a revolving credit score facility with a complete dedication of $2.175 billion. This follows adjustments to the $2.275 billion facility the securities buying and selling enterprise signed in April final yr.
Robinhood entered this second modification deal on March 24, 2023, in line with the agency’s Kind 8-Okay filed earlier than the US Securities and Alternate Fee (SEC).
“The Credit score Settlement requires
RHS to keep up a minimal consolidated tangible web price and a minimal extra
web capital, and topics RHS to a specified restrict on minimal web capital to
mixture debit objects,” Robinhood wrote within the submitting signed by Jason Warnick,
the Chief Monetary Officer of Robinhood Markets, the dad or mum firm of
Robinhood Securities.
Moreover, the submitting states
that as of March 24, there was no borrowings excellent beneath the amended
settlement; therefore, a complete of $2.175 billion stays out there to the
broker-dealer.
Robinhood Securities first
entered into the 364-day senior secured revolving credit score facility for $2.18
billion in April 2021. Nonetheless, on April 11 final yr, the ability was amended to $2.275 billion, which has now been additional amended to $2.175
billion.
Developments at Robinhood
In the meantime, in its January 2023 working knowledge, Robinhood Markets reported a 31% year-over-year decline within the variety of month-to-month lively customers. The customers dropped from 17.3 million to 12 million. Nonetheless, month-over-month, complete customers rose by 600,000 from 11.4 million a month earlier.
The US-based commission-free inventory buying and selling and funding platform additionally just lately shelved its plans to re-enter the UK by acquisition of Ziglu, a cryptocurrency portfolio funding platform. The corporate first introduced plan to take over Ziglu in April final yr and made subsequent efforts to chop down the worth of the acquisition by 57% from $170 million to $72.5 million, citing market circumstances. It lastly cancelled the deal final month.
In a distinct improvement, Robinhood’s crypto arm has additionally drawn the eye of the SEC. The corporate disclosed final month that it obtained an investigative subpoena from the US securities regulator enquiring about its cryptocurrency listings.
Robinhood Securities (RHS), a California-based
broker-dealer, for the second time has amended its credit score settlement with a financial institution
syndicate led by JP Morgan Chase and now has
entry to a revolving credit score facility with a complete dedication of $2.175 billion. This follows adjustments to the $2.275 billion facility the securities buying and selling enterprise signed in April final yr.
Robinhood entered this second modification deal on March 24, 2023, in line with the agency’s Kind 8-Okay filed earlier than the US Securities and Alternate Fee (SEC).
“The Credit score Settlement requires
RHS to keep up a minimal consolidated tangible web price and a minimal extra
web capital, and topics RHS to a specified restrict on minimal web capital to
mixture debit objects,” Robinhood wrote within the submitting signed by Jason Warnick,
the Chief Monetary Officer of Robinhood Markets, the dad or mum firm of
Robinhood Securities.
Moreover, the submitting states
that as of March 24, there was no borrowings excellent beneath the amended
settlement; therefore, a complete of $2.175 billion stays out there to the
broker-dealer.
Robinhood Securities first
entered into the 364-day senior secured revolving credit score facility for $2.18
billion in April 2021. Nonetheless, on April 11 final yr, the ability was amended to $2.275 billion, which has now been additional amended to $2.175
billion.
Developments at Robinhood
In the meantime, in its January 2023 working knowledge, Robinhood Markets reported a 31% year-over-year decline within the variety of month-to-month lively customers. The customers dropped from 17.3 million to 12 million. Nonetheless, month-over-month, complete customers rose by 600,000 from 11.4 million a month earlier.
The US-based commission-free inventory buying and selling and funding platform additionally just lately shelved its plans to re-enter the UK by acquisition of Ziglu, a cryptocurrency portfolio funding platform. The corporate first introduced plan to take over Ziglu in April final yr and made subsequent efforts to chop down the worth of the acquisition by 57% from $170 million to $72.5 million, citing market circumstances. It lastly cancelled the deal final month.
In a distinct improvement, Robinhood’s crypto arm has additionally drawn the eye of the SEC. The corporate disclosed final month that it obtained an investigative subpoena from the US securities regulator enquiring about its cryptocurrency listings.
