Virtu Financial firms $1.8 billion term loan at SOFR plus 300 bps

By Sara Rosenberg

New York, Jan. 7 – Virtu Financial Inc. (VHF Parent LLC) finalized pricing on its $1.8 billion seven-year senior secured covenant-lite first-lien term loan at SOFR+CSA plus 300 basis points, the low end of the SOFR+CSA plus 300 bps to 325 bps talk, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0.5% floor, 101 soft call protection for six months, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

JPMorgan Chase Bank, Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Jefferies LLC, CIBC and BMO Capital Markets are the lead arrangers on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Friday, the source added.

Proceeds will be used to repay an existing senior secured term loan, to fund share repurchases under the company’s authorized repurchase program and for general corporate purposes.

The company has also received commitments for a $250 million revolving credit facility due 2025 to refinance its existing $50 million revolver due 2022.

Pro forma total leverage will be 1.4x, and net leverage will be 0.9x.

Virtu is a New York-based provider of financial services technology.

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