MarketAxess amendment doubles revolving commitments to $100 million

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – MarketAxess Holdings Inc. doubled its revolving commitments to $100 million under a Friday amendment to its credit agreement with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The amended and restated agreement includes a $5 million sublimit for standby letters of credit.

MarketAxess is permitted to upsize the facility by up to an additional $50 million in increments of $5 million with a $10 million minimum.

The facility will mature in October 2017.

Borrowings will bear interest at Libor plus 150 basis points with a 0% Libor floor.

There is a commitment fee of 40 bps and a fronting fee on the average daily amount of letter of credit exposure of 12.5 bps per annum.

The credit agreement is originally dated Jan. 14, 2013.

The agreement requires to the company to comply with a maximum consolidated total leverage ratio of 2.5 times and a minimum consolidated interest coverage ratio of 3.5 times.

It also requires the company’s adjusted EBITDA to be at least $80 million on the last day of each fiscal quarter.

Proceeds are expected to be used for general corporate purposes.

No borrowings are currently drawn under the revolver. An existing letter of credit in the original amount of $1,421,472 was included under the letter of credit sub-limit at the closing of the restated agreement.

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

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