 "Carl Icahn")
Billionaire activist investor Carl Icahn has amended the terms of his personal loans to separate them from the price of Icahn Enterprises’ depositary units, the investment firm disclosed in a filing on Monday.
The move comes months after short-seller Hindenburg’s criticism triggered a massive fall in the shares of his investment company.
Icahn and its affiliates have entered into a three-year loan agreement with banks, including Bank of America, NA, Bank of Montreal and Deutsche Bank AG, which amends and restates previous loan agreements with such lenders and consolidates all borrowings of Icahn, the filing said.
Shares of Icahn Enterprises soared up to 16.3 per cent to $33.58 in early trade.
Hindenburg had called Icahn’s pledge of about 60 per cent of his IEP stake as collateral for margin loans risky, which could result in margin calls should the unit’s prices decline.
Icahn’s new loan is secured by 320 million IEP depositary units and $2 billion of interests in private investment funds managed by Icahn Enterprises. Unlike under the previous loan, any margin call will not be tied to the market price of the depositary units. The Wall Street Journal reported details of the agreement earlier on Monday.
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