Billionaire behind Trump’s $175 million bond discusses deal.

Billionaire Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, disclosed details about the swift formation of the deal to back former President Donald Trump’s $175 million bond in New York. In an interview with CNN, Hankey revealed that Trump furnished the entire amount in cash as collateral for the bond. Hankey emphasized that facilitating such transactions aligns with their business practices and that they would have extended similar support to any other individual. Knight Specialty Insurance, headquartered in California, specializes in providing subprime auto loans to consumers with less-than-ideal credit scores.

Hankey, a staunch supporter of Trump’s presidential endeavors, initiated contact with the Trump Organization last month amid challenges in securing a $464 million bond. Despite the initial discussions surrounding a larger bond, the final amount was reduced to $175 million by a New York appeals court. Subsequently, the Trump team reengaged with Knight Specialty, opting for Trump to solely provide cash as collateral, although initially, a mix of investment-grade bonds and cash was considered. Notably, Hankey stated that while Knight Specialty received the investment-grade bonds for approval, they were not utilized as collateral in the end.

Regarding the source of the $175 million in cash, Hankey stated that he remains unaware. Hankey and his family have previously contributed to Trump’s presidential campaigns and intend to support him again in the upcoming 2024 elections. While Hankey mentioned no direct communication from the president, Eric Trump expressed gratitude to Hankey for the business opportunity. This recent collaboration isn’t the first instance of Hankey’s involvement with Trump’s ventures. In 2022, Axos Bank, where Hankey holds a significant stake, provided Trump with a $100 million loan to refinance Trump Tower’s mortgage, although Hankey claimed he was unaware of the loan at the time.