Virtu Announces Opportunistic Refinancing
25 October 2016 - 12:00AM
Virtu Financial, Inc. (NASDAQ:VIRT) a leading technology-enabled
market maker and liquidity provider to the global financial
markets, today announced the opportunistic refinancing of its term
loan resulting in an extended maturity and lower cost.
The new terms include a decrease in the interest rate of
approximately 1.00% per annum and a new maturity of
2022. The new term loan has an interest rate of LIBOR
plus 3.5% with a LIBOR floor of 0.75% and a maturity of 2022.
Terms of Virtu's prior term loan included an interest rate of
LIBOR plus 4.25%, a LIBOR floor 1.00% and a maturity of 2019.
"We are pleased to announce this opportunistic refinancing of
our term loan," said Douglas Cifu, Chief Executive Officer of
Virtu. "Our ability to extend the maturity of our debt
to 2022 while meaningfully reducing the costs of the term loan
demonstrates the confidence our investors have in the long term
stability of our business model."
The transaction is anticipated to be net leverage neutral to
Virtu as the additional principal will be used to offer to
refinance the $34 million loan incurred in connection with the
acquisition of a minority stake in SBI Japannext, Co., Ltd.
Gross proceeds will also be used by Virtu to repay the principal of
existing term loan and to pay fees and expenses related to the
refinance transaction. If the lender in the SBI Japannext
transaction declines the prepayment, the excess cash from the
financing will be used for general corporate purposes.
The principal amount of the new term loan is $540 million.
The bulk of the new term loan is due and payable upon maturity in
2022 with 1% of principal required to be amortized per year, as was
the case with Virtu’s prior term loan. All other material
terms remain the same as the prior term loan.
J.P. Morgan acted as lead bookrunner and arranger in the
transaction.
About Virtu Financial, Inc.
Virtu is a leading technology-enabled market maker and liquidity
provider to the global financial markets. We stand ready, at any
time, to buy or sell a broad range of securities and other
financial instruments, and we generate revenue by buying and
selling securities and other financial instruments and earning
small amounts of money on individual transactions based on the
difference between what buyers are willing to pay and what sellers
are willing to accept, which we refer to as "bid/ask spreads,"
across a large volume of transactions. We make markets by providing
quotations to buyers and sellers in more than 12,000 securities and
other financial instruments on more than 235 unique exchanges,
markets and liquidity pools in 36 countries around the world. We
believe that our broad diversification, in combination with our
proprietary technology platform and low-cost structure, enables us
to facilitate risk transfer between global capital markets
participants by supplying liquidity and competitive pricing while
at the same time earning attractive margins and returns.
Cautionary Note Regarding Forward-Looking
Statements
The foregoing information contains certain forward-looking
statements that reflect the company's current views with respect to
certain current and future events and financial performance. These
forward-looking statements are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the
company's operations and business environment which may cause the
company's actual results to be materially different from any future
results, expressed or implied, in these forward-looking statements.
Any forward-looking statements in this release are based upon
information available to the company on the date of this release.
The company does not undertake to publicly update or revise its
forward-looking statements even if experience or future changes
make it clear that any statements expressed or implied therein will
not be realized. Additional information on risk factors that could
potentially affect the company's financial results may be found in
the company's filings with the Securities and Exchange
Commission.
Contact:Investor RelationsAndrew SmithVirtu
Financial, Inc.(212) 418-0195investor_relations@virtu.com
Media Relationsmedia@virtu.com
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