Kirkland & Ellis advised the initial purchasers on a $300 million offering of Class A-2 secured fund fee revenue term notes by subsidiaries of DigitalBridge Group, Inc. (NYSE: DBRG), according to a May 12 statement. The financing also included the issuance of Class A-1 variable funding notes, which will allow the co-issuers to borrow up to $100 million on a revolving basis.
The transaction is significant as it provides DigitalBridge with additional financial flexibility and access to capital through securitization backed by management fees and certain equity interests in portfolio companies.
The notes are secured by management fees earned from DigitalBridge’s digital infrastructure funds, along with specific equity interests in its portfolio companies. This structure is designed to provide investors with assurance regarding the underlying assets supporting the issued notes.
Kirkland & Ellis’s team advising on this deal included structured finance lawyers Michael Urschel, Thomas Prommer, Suril Patel, Shuang Wu, Emma Tall, Kelli Johnson and Helen Huynh; as well as tax lawyer David Gilbert.
As financial markets continue to evolve, such transactions may become more common among asset managers seeking alternative ways to leverage their recurring revenue streams.
