Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 16

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 16
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 general partner affiliate commitments to our investment vehicles;

•principal and interest payments on our debt; 

•dividends to our preferred and common stockholders;

50

•our liability for corporate and other taxes;

•acquisitions of target investment management businesses; and

•obligation for lease payments on our corporate offices.

Our primary sources of liquidity are: 

•cash on hand;

•fees received from our investment management business, including our share of distributed net incentive fees and carried interest; 

•cash flow generated from our investments, both from operations and return of capital, including proceeds from full or partial realization of investments;

•availability under our Variable Funding Notes ("VFN");

•issuance of additional term notes under our corporate securitization; and

•proceeds from public or private equity and debt offerings. 

Overview

At December 31, 2024, our liquidity position was approximately $440 million, composed of available corporate cash and including the full $300 million under our VFN. Available corporate cash generally represents cash at our OP entity after allocating cash for certain compensatory liabilities, and excludes cash held at subsidiaries of the OP, including cash maintained to satisfy regulatory capital requirements in applicable foreign jurisdictions.  

We believe we have sufficient cash on hand, and anticipated cash generated from operating activities and availability of external financing sources, to meet our short term and long term liquidity and capital requirements.

While we have sufficient liquidity to meet our operational needs, we continuously evaluate alternatives to efficiently manage our capital structure and market opportunities to strengthen our liquidity and to provide further operational and strategic flexibility. 

Significant Liquidity and Capital Activities in 2024 and through the Date of Filing

•We continued to reduce higher cost corporate indebtedness through the full exchange/redemption of the remaining $78 million of our 5.75% senior notes, which resulted in annual interest savings of approximately $4.5 million. $73 million of note principal was exchanged for 8.2 million shares of the Company's class A common stock and $5 million of note principal was redeemed for cash.

•We settled the remaining $35 million contingent consideration payable to Wafra in connection with the 2022 redemption of their investment in the Company's investment management business, through payment of $17.5 million in cash and $17.5 million in shares of the Company's class A common stock.

•We completed monetization of marketable equity securities that form non-core investments, receiving total net proceeds of