Virtu Financial launches $1.5 billion term loan at Libor plus 350 bps

By Sara Rosenberg

New York, Jan. 11 – Virtu Financial LLC launched on Friday its $1.5 billion seven-year first-lien term loan with price talk of Libor plus 350 basis points with a 25 bps leverage-based step-down, a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $1.55 billion of senior secured credit facilities (Ba3/B+/BB-) also include a $50 million three-year revolver.

Jefferies LLC and RBC Capital Markets are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Jan. 24, the source added.

Proceeds will be used to help fund the acquisition of Investment Technology Group Inc. for $30.30 per share, or about $1 billion, to refinance existing first-lien debt at both companies and to fund fees and expenses associated with the transaction.

Other funds for the transaction will come from cash on hand.

Total leverage will be 2.76 times based on trailing 12 months adjusted EBITDA as of Sept. 30. The company is targeting leverage of 2 times to 2.25 times by year-end 2020 as capital and expense synergies are realized.

Closing is expected in the first half of this year, subject to Investment Technology shareholder approval and regulatory approvals.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets. Investment Technology is a New York-based financial technology company.

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