Digital Bridge, the terms for a $300 million guaranteed note are confirmed… mainly used for ABS swaps

Digital Bridge ($DBRG) has confirmed the issuance terms for a $300 million asset-backed security (ABS) type of guaranteed notes. This move is strongly characterized as a “refinancing,” involving the replacement of existing debt, and is interpreted as an effort to adjust the financing structure.

Issuance of $300 million guaranteed notes… coupon rate 6.326%

Digital Bridge announced on the 1st local time that its subsidiary has finalized the pricing of a $300 million (approximately 442.5 billion KRW) issuance of “Series A-2 of 2026” guaranteed notes. The notes have a coupon rate of 6.326% annually, with interest paid quarterly. The expected maturity date is June 2031.

The company plans to use the net proceeds after deducting issuance costs and reserves to repay the outstanding notes of the existing asset-backed security “Series 2021-1.” Since this structure involves replacing old bonds with new bonds, the core of this transaction is not about expanding new investments but about adjusting maturity profiles and financing conditions.

It will also advance a revolving note that can borrow up to an additional $100 million

Digital Bridge stated that, alongside the issuance of the Series A-2 notes, it will also issue an “A-1 VFN” revolving note. This move allows for an additional borrowing of up to $100 million (about 147.5 billion KRW). A VFN is a revolving borrowing tool that allows funds to be drawn within a credit limit as needed, typically used for liquidity management.

The expected deadline for this transaction is May 11, 2026. However, the company added that the completion depends on meeting customary closing conditions, and actual transaction completion is not guaranteed.

Refinancing-focused financing… examining financial flexibility in a rate environment

The market views this issuance more as a means to ensure “financial flexibility” rather than aggressive expansion. The intention is to use the guaranteed notes to repay existing securitized debt and to establish a separate revolving credit line, thereby enhancing the ability to handle maturing debt.

Especially in the current environment where market sensitivity to interest rates and financing costs is high, stabilizing the capital structure is considered more important than merely increasing borrowing scale. If Digital Bridge completes this financing as planned, it is expected to serve as a signal for its future liquidity management and refinancing strategy direction.

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