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Robinhood enters restated $2.18 billion 364-day revolver
By Wendy Van Sickle
Columbus, Ohio, March 24 – Robinhood Securities, LLC, a subsidiary of Robinhood Markets, Inc., entered into an amended and restated credit agreement Friday that restates its $2,275,000,000 364-day revolver entered into in April 2022, according to an 8-K filing with the Securities and Exchange Commission.
The restated revolver is sized at $2,175,000,000, and commitments may be increased by up to $1,087,500,000, for total commitments of up to $3,262,500,000. It is due to mature on March 22, 2024.
JPMorgan Chase Bank, NA is the administrative agent and a bookrunner and lead arranger along with BMO Capital Markets Corp. BMO Harris Bank, NA is the syndication agent.
Borrowings must be specified as tranche A, B, or C. Tranche A loans are secured by users’ securities purchased on margin and are used primarily to finance margin loans. Tranche B loans are secured by the right to the return from National Securities Clearing Corp. of NSCC margin deposits and cash and property in a designated collateral account and used for the purpose of satisfying NSCC deposit requirements. Tranche C loans are secured by the right to the return of eligible funds from any reserve account of the borrower and cash and property in a designated collateral account and used for the purpose of satisfying reserve requirements under Rule 15c3-3 of the Securities Exchange Act of 1934.
Borrowings bear interest at daily simple SOFR plus 10 basis points plus a margin of 125 basis points from tranche A and 250 bps for tranche B and C loans.
Undrawn commitments accrued fees of 50 bps per annum.
Robinhood must maintain a minimum consolidated tangible net worth and a minimum excess net capital. At closing, no borrowings were outstanding under the revolver.
The Menlo Park, Calif.-based financial services company offers commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app.
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