Carl Icahn, the renowned activist investor, has successfully renegotiated loan terms with a group of banks, the Wall Street Journal reported, sending shares of his holding company Icahn Enterprises soaring on Monday.
The renegotiation marked a significant move to stabilize his investment firm after shares in Icahn's firm plummeted due to a scathing report by short seller Hindenburg Research.
In an SEC filing on Monday, it was revealed that Icahn consolidated all his borrowing under a new three-year term loan, extending the maturity of previous loans and includes amendments to certain covenants.
Importantly, the new loan decouples Icahn's borrowing from the share price performance of Icahn Enterprises LP (NYSE:IEP).
According to the Journal, the loan is secured by 320 million IEP depositary units and $2 billion of interests in private investment funds managed by Icahn Enterprises.
A principal repayment of $500 million is due on or before September 1, followed by quarterly sums of $87.5 million starting in September 2024, and a final amount of $2.5 billion at the end of the term.
Shares of Ichan Enterprises were up 17% by midday Monday at US$33.65.
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