MarketAxess gets $500 million facility with revolver and LoC sublimit

By Cady Vishniac

Detroit, Nov. 18 – MarketAxess Holdings Inc. entered into an agreement on Friday for a $500 million credit facility maturing Nov. 12, 2021 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility consists of a revolver and a $5 million letter-of-credit sublimit for standby letters of credit.

No funds were borrowed at the time of closing.

Proceeds will be used for general corporate purposes.

All borrowings on the facility will bear interest at Libor plus a range of 150 basis points to 225 bps, subject to a 0% Libor floor.

The range is based on the company’s net leverage.

There is a participation fee that is required to be paid to the administrative for each lender for the company’s participations in letters of credit at a rate ranging from 150 bps to 225 bps, based on the average daily amount of each lender’s letter of credit exposure.

Consolidated net leverage must not exceed 2.5x at the end of each fiscal quarter. Consolidated adjusted EBITDA for the trailing twelve-month period ending at the last day of each fiscal quarter should not be less than $250 million.

JPMorgan, PNC Bank, NA, U.S. Bank, NA and Morgan Stanley MUFG Loan Partners, LLC acted as joint bookrunners, syndication agents and joint lead arrangers.

MarketAxess is a New York-based provider of corporate bond and other fixed-income trading platforms used by institutional investors.

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