SIEBERT FINANCIAL CORP Debt Disclosure
14. Long-Term Debt
Mortgage with East West Bank
Overview
On December 30, 2021, the Company purchased the Miami office building for approximately $6.8 million, which was partially financed through a mortgage with East West Bancorp, Inc. (“East West Bank”). The mortgage was approximately $4 million with a commitment for another $338,000 to finance part of the build out of the Miami office building. As of December 31, 2025 and 2024, the Company’s outstanding balance of the mortgage was $4,140,000 and $4,228,000, respectively.
The Company’s obligations under the mortgage are secured by a lien on the Miami office building and the term of the loan is ten years. The repayment schedule will utilize a 30-year amortization period, with a balloon on the remaining amount due at the end of ten years. The interest rate is 3.6% for the first 7 years, and thereafter the interest rate shall be at the prime rate as reported by the Wall Street Journal, provided that the minimum interest rate on any term loan will not be less than 3.6%. As part of the agreement, the Company must maintain a debt service coverage ratio of 1.4 to 1. The loan is subject to a prepayment penalty over the first five years which is calculated as a percentage of the principal amount outstanding at the time of prepayment. This percentage is 5% in the first year and decreases by 1% each year thereafter, with the prepayment penalty ending after 5 years. As of December 31, 2025, the Company was in compliance with all of its covenants related to this agreement.
Remaining Payments
Future remaining annual minimum principal payments for the mortgage with East West Bank as of December 31, 2025 were as follows:
| Year | Amount | |||
| 2026 | $ | 91,000 | ||
| 2027 | 95,000 | |||
| 2028 | 98,000 | |||
| 2029 | 112,000 | |||
| 2030 | 117,000 | |||
| Thereafter | 3,627,000 | |||
| Total | $ | 4,140,000 | ||
The interest expense related to this mortgage was $153,000 and $155,000 for the years ended December 31, 2025, and 2024, respectively. As of December 31, 2025, the interest rate for this mortgage was 3.6%.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2023 | May 10, 2024 | |
| 2022 | Mar 29, 2023 | |
| 2021 | Mar 30, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2016 | Apr 6, 2017 | |
| 2015 | Mar 30, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.