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Digi International provides information on exposure to Silicon Valley Bank
The Fly

Digi International provides information on exposure to Silicon Valley Bank

Digi International (DGII) provided information on its exposure to Silicon Valley Bank (SIVB) being closed by the California Department of Financial Protection and Innovation on March 10, 2023. The CDFPI has appointed the Federal Deposit Insurance Corporation as receiver of SVB. Digi said it has deposits of just over $2 million at SVB. These deposits represent approximately 5% of Digi’s cash and cash equivalents balances as of March 10, 2023. Digi’s deposits at SVB are largely uninsured and Digi does not know to what extent it will be able to recover its cash on deposit at SVB. Digi’s remaining cash and cash equivalent balances of over $35 million are held primarily at BMO Harris Bank (BMO) in accordance with the terms of Digi’s Second Amended Credit Agreement under which BMO serves as the administrative and collateral agent. The FDIC has said it will pay uninsured depositors at SVB an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors. Digi is confident its existing cash and cash equivalents balance not deposited at SVB as well as cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond.

Published first on TheFly

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