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Virtu Financial sets $1.5 billion term loan discount at 99.5
By Sara Rosenberg
New York, Jan. 30 – Virtu Financial LLC finalized the original issue discount on its $1.5 billion seven-year first-lien term loan at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.
Also, the 101 soft call protection on the term loan was extended to one year from six months and a ticking fee was added of half the spread from days 31 to 60 and the full spread thereafter, the source said.
Pricing on the term loan remained at Libor plus 350 basis points with a 25 bps leverage-based step-down and a 0% Libor floor.
The company’s $1.55 billion of senior secured credit facilities (Ba3/B+/BB-) also include a $50 million three-year revolver priced at Libor plus 350 bps with a 0% Libor floor.
Both the revolver and the term loan include a springing maturity.
Jefferies LLC and RBC Capital Markets are the lead arrangers on the deal.
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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