MarketAxess signs new $750 million credit agreement with JPMorgan

By William Gullotti

Buffalo, N.Y., Aug. 9 – MarketAxess Holdings Inc. entered into a new $750 million credit agreement with JPMorgan Chase Bank, NA as administrative agent on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

Similar to the agreement it replaces, the new facility consists of a $750 million revolver that features a $5 million letter-of-credit sublimit for standby letters of credit and a $380 million sublimit for swingline loans.

Subject to certain specified conditions, the borrower is permitted to upsize the facility by up to $375 million.

The revolver will mature Aug. 9, 2026. As with the previous facility, the company has an option to request up to two additional 364-day extensions at the discretion of each lender and subject to customary conditions.

Borrowings will bear interest at SOFR plus a margin ranging from 125 basis points to 175 bps. The margin is based on the company’s consolidated total leverage ratio, and the interest rate is subject to a floor of 0%.

As with the previous facility, there is a participation fee that is required to be paid to the administrative agent for each lender for the company’s participations in letters of credit at a rate ranging from 125 bps to 175 bps, based on the average daily amount of each lender’s letter of credit exposure.

There will be a 25 bps commitment on the undrawn portion of the commitment.

The company is required to maintain a consolidated total leverage ratio of no more than 2.5x. The new agreement further requires the borrower’s broker-dealer subsidiaries maintain monthly regulatory net capital in an amount equal to or in excess of 125% of the net capital amount required.

Additionally, MarketAxess must maintain monthly regulatory net capital equal to or in excess of the greater of an amount that is either 125% of the net capital amount required under applicable regulations on or with respect to MarketAxess or 6% of MarketAxess’ aggregate debit items.

No funds were borrowed at closing.

In addition to serving as administrative agent, JPMorgan is also a joint bookrunner, joint lead arranger and syndication agent along with PNC Capital Markets LLC, U.S. Bank NA and BofA Securities, Inc.

The agreement replaces the company’s existing credit agreement, entered into on Oct. 15, 2021 and amended March 28, that would have matured Oct. 15, 2024.

The prior agreement was likewise terminated at closing.

New York-based MarketAxess provides corporate bond and other fixed-income trading platforms used by institutional investors.

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