Digitalbridge Group, Inc. (DBRG) has disclosed a new risk, in the Debt & Financing category.
Digitalbridge Group, Inc. faces a financial risk as its securitization Variable Funding Notes (VFN) and potential future debts are pegged to the Secured Overnight Financing Rate (SOFR). Transitioning from USD-LIBOR to SOFR could lead to unpredictably higher or lower interest rates and payment amounts. With SOFR’s relatively recent implementation, unforeseen calculation or publication issues could disrupt the company’s hedging strategies and alter the economic value of these financial instruments. Moreover, should the VFN purchase agreement’s agent be unable to determine SOFR rates, an alternative benchmark may need to be adopted, introducing additional uncertainty for Digitalbridge.
The average DBRG stock price target is $21.67, implying 13.75% upside potential.
To learn more about Digitalbridge Group, Inc.’s risk factors, click here.
