Siebert Financial Corp. (NASDAQ:SIEB), a provider of brokerage and financial services, has entered into a $20 million revolving credit facility with East West Bank, as per a recent 8-K filing with the Securities and Exchange Commission. The agreement, effective as of August 15, 2024, allows the company access to funds for acquisitions, stock buybacks, and general corporate needs.
The credit facility, with an initial term of two years, carries an interest rate on the outstanding balance either at the one month Term Secured Overnight Financing Rate plus 3.15% or a minimum of 7.50%, whichever is greater. The agreement also includes a 0.50% origination fee based on the total credit capacity.
Key covenants require Siebert Financial to maintain a minimum debt service coverage ratio of 1.35:1.00 and a minimum net capital of $43 million. This financial obligation is guaranteed by John J. Gebbia, the company's CEO, Gloria E. Gebbia, a company director, and their living trust.
The company, headquartered in New York, is known within the industry under the SIC category of Security Brokers, Dealers & Flotation Companies. The new credit facility is expected to provide Siebert Financial with increased financial flexibility as it pursues its strategic objectives.
This financial development is based on the information provided in the company's SEC filing and reflects the company's financial arrangements as of the report date. Further details and conditions of the credit agreement and related financial instruments were outlined in the filing.
In other recent news, Siebert Financial Corp. has made noteworthy strides in its operations. The company has announced its acquisition of Gebbia Entertainment LLC, marking a significant foray into the entertainment and media sectors. This acquisition includes a business partnership with GAMMA Media and L.A. Reid LLC, and also secures rights to The Siemens, a rising musical group managed by Akon.
Siebert Financial has also appointed Raakhee Miller as President of Siebert Technologies, LLC. With over two decades of experience in technology and leadership roles, Miller is expected to enhance Siebert's digital platforms.
Additionally, the company has recently changed its independent registered public accounting firm. Crowe LLP has been appointed as the new auditor for the fiscal year ending December 31, 2024. This follows the resignation of the former auditor, Baker Tilly US, LLP.
These are among the recent developments in the company, indicating a dynamic approach to business expansion and operational enhancements.
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