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Robinhood amends, restates $2.25 billion 364-day revolver
By Sarah Lizee
Olympia, Wash., March 22 – Robinhood Securities, LLC, a subsidiary of Robinhood Markets, Inc., amended and restated its $2.25 billion 364-day senior secured revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA is the administrative agent.
The total commitments under the credit agreement may be increased for a total commitment of $3.38 billion.
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+ 10 basis points plus a margin of 125 bps for 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. As of Friday, 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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