StoneX Group Inc. (NASDAQ:SNEX), owner of Forex brands such as FOREX.com and City Index, announced today that it intends to offer $550 million in aggregate principal amount of Senior Secured Notes due 2031.
The Notes and related securities will be offered in a private offering to persons reasonably believed to be institutional purchasers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to certain persons outside the United States pursuant to Regulation S under the Securities Act.
The company intends to use the net proceeds from the sale of the Notes, together with cash on hand, to (i) fund the repayment in full of the 8.625% Senior Secured Notes due 2025, (ii) repay the entire current term under the revolving the company’s senior secured credit facility and (iii) to pay the relevant fees and expenses related thereto.
The Notes will be fully and unconditionally guaranteed, jointly and severally, in a second senior secured basis by each of StoneX’s existing and future subsidiaries guaranteeing the indebtedness under the company’s senior secured revolving credit facility and certain others higher requirements. Warranties are subject to release under certain circumstances.
The Notes and related guarantees will be secured secondarily by liens on substantially all of the property and assets of the company and the guarantors, subject to certain exceptions and permitted liens. The encumbrances on the assets of the company and the guarantors securing the Notes and related guarantees shall be contractually dependent on the encumbrances on the assets of the company and the guarantors securing the existing and future first lien obligations of the company and the guarantors, including of indebtedness under the Company’s senior revolving credit facility as a result of an agreement between creditors to be entered into by the collateral agent for the Notes and the agent for the Company’s senior revolving credit facility.
The Bonds are expected to pay interest semi-annually, in arrears.