MarketAxess renews $500 million facility with revolver and LoC sublimit

By Rebecca Melvin

Concord, N.H., Oct. 20 – MarketAxess Holdings Inc. has entered into an agreement for a $500 million credit facility maturing Oct. 15, 2024 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 and a $50 million sublimit for swingline loans.

No funds were borrowed at the time of closing, which was Oct. 15.

The agreement replaces the company’s existing credit agreement entered into on Nov. 13, 2020, which had a Nov. 12 maturity date. That agreement was terminated.

Under the new agreement, the company has an option to request up to two additional 364-day extensions at the discretion of each lender and subject to customary conditions.

It is also permitted to upsize the facility by up to $250 million in total, subject to conditions.

Borrowings will bear interest at Libor plus a range of 125 basis points to 175 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 agent for each lender for the company’s participations in letters of credit at a rate ranging from 125 bps to 175 bps, based on the average daily amount of each lender’s letter of credit exposure.

Consolidated net leverage must not exceed 2.5 to 1.0.

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.

New York-based MarketAxess provides corporate bond and other fixed-income trading platforms used by institutional investors.

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