• Thu. Apr 18th, 2024

Knight Specialty Insurance Provides $175 Million Bond to Former President Donald Trump: A Unique Look at their Business Relationship

BySamantha Jones

Apr 2, 2024
The company behind Trump’s $175 million bond deal shares insights into its creation

Knight Specialty Insurance, a California-based company known for providing subprime auto loans to car buyers with weaker credit scores, recently underwrote former President Donald Trump’s $175 million bond in New York. The deal happened quickly, and Trump posted all cash as collateral for the bond.

Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, revealed to CNN that he reached out to the Trump Organization last month when Trump was having difficulty putting together a $464 million bond. Eventually, the bond amount was reduced to $175 million by a New York appeals court, and Trump turned to Knight Specialty Insurance for assistance.

Initially, Trump planned to post a mix of investment-grade bonds and cash as collateral, but eventually decided to put up all cash. Knight Specialty approved the bonds but they were not posted in the end. Hankey confirmed to CNN that he and his family have supported Trump’s presidential campaigns in the past and intend to do so again in 2024. While Hankey has not been contacted directly by the president, Eric Trump did reach out to thank him for the business.

This recent deal is not the first time that Hankey and Trump’s businesses have been connected. In 2022, Axos Bank, a California lender in which Hankey is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower. Despite their previous business dealings, Hankey and Knight Specialty Insurance continue to support Trump and his endeavors.

By Samantha Jones

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