Beneficient announced that, through an indirect subsidiary, it has entered into and closed on a $25 million three-year term loan financing with HH-BDH LLC ("Hicks"), an entity associated with Tom Hicks, a member of Beneficient's board of directors. The Company plans to utilize the proceeds to repay certain of its outstanding obligations, fund product distribution, and provide additional working capital. The three-year term loan is secured by various assets owned by Beneficient and related entities.

Borrowings under the credit agreement will bear interest calculated according to a base rate, an adjusted term SOFR rate or an adjusted daily simple SOFR rate, at the Company's election. The Company elected the option of adjusted daily simple SOFR + 6.5% for the first two years and adjusted daily simple SOFR + 5.5% for the third year, with interest payable monthly. In addition, the terms of the loan include a prepayment fee if all or any portion of the loan principal is paid back prior to two years following the closing date.

Hicks received funding for the term loan financing through a loan from an unaffiliated financial institution.