Insider Exclusive: Knight Specialty Insurance Chairman’s $175 Million Bond Deal with Trump Revealed

How the firm behind Trump’s $175 million bond deal made it happen

Knight Specialty Insurance chairman and majority shareholder Don Hankey has recently shared details about underwriting a $175 million bond for former President Donald Trump in New York. In an exclusive phone interview with CNN, Hankey revealed that the deal was quickly put together, with Trump providing all cash as collateral. The California-based company is known for offering subprime auto loans to buyers with lower credit scores.

Hankey, who has been a supporter of Trump’s presidential campaigns, reached out to the Trump Organization last month when the former president faced challenges in securing a $464 million bond. After discussions about a bond of that size, the amount was eventually reduced to $175 million by a New York appeals court. Initially, Trump had planned to use a mix of investment-grade bonds and cash as collateral but ended up using all cash. However, the source of the $175 million cash remains unknown.

Hankey confirmed that he and his family have donated to Trump’s campaigns in the past and intend to support him in 2024. While he has not directly heard from the president, Eric Trump reached out to thank him for the recent business deal. This is not the first time that Hankey’s business interests have intersected with Trump’s – Axos Bank, where Hankey is a leading shareholder, provided a $100 million loan to refinance the mortgage on Trump Tower in 2022, although Hankey was not initially aware of the loan.

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