Investment Technology Group enters into $150 million 364-day revolver

By Tali Rackner

Minneapolis, Jan. 30 – Investment Technology Group, Inc. and wholly owned subsidiary ITG Inc. entered into a $150 million 364-day revolving credit agreement on Jan. 26 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement includes an accordion feature allowing the company to expand the facility up to a total of $225 million.

Borrowings bear interest at Libor plus 250 basis points, and there is an unused commitment fee of 75 bps.

Proceeds are to provide liquidity for ITG’s U.S. brokerage operations to satisfy clearing margin requirements and to finance temporary positions from delivery failures or non-standard settlements, according to the filing.

Availability under the credit agreement is limited to either a percentage of the clearing deposit required by the National Securities Clearing Corp. or a percentage of the market value of temporary positions pledged as collateral.

Bank of America, NA and Bank of Montreal are the syndication agents.

Investment Technology Group is an independent execution and research broker based in New York.

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