MSTR - Silvergate Capital gains on prepayment of $205M in secured loan

2023-03-27 08:10:58 ET

• Related to the wind down of operations and voluntarily liquidation of Silvergate Bank, its subsidiary, Silvergate Capital ( NYSE: SI ) announced that the Bank has agreed to the prepayment of a $205M secured term loan issued under the Bank's SEN Leverage program to MacroStrategy, subsidiary of MicroStrategy ( MSTR ).
• The term loan was collateralized by certain bitcoin owned by borrower, MacroStrategy and a $5M cash reserve account held by borrower at the Bank.
• Post prepayment terms, Waiver and Payoff to Credit and Security Agreement, dated as of Mar. 24, 2023, by and between borrower and Bank, the bank agreed to accept a payoff amount of $161M in full repayment, satisfaction, and discharge of the term loan and all other obligations under the Credit Agreement, and the other related loan documents.
• The bank waived the prepayment charge due on such prepayment post the Credit Agreement and on receipt of the Payoff Amount, the Credit Agreement was terminated.
• The Bank released its security interest in all of the Borrower's assets collateralizing the Term Loan, including the bitcoin that was serving as collateral.
• Shares trading 8.1% higher premarket.

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