Virtu Financial, Inc. (NASDAQ:VIRT) announced today that its subsidiaries, VFH Parent LLC and Valor Co-Issuer, Inc., intend to offer $500 million in aggregate principal amount of senior notes due 2031.
This is an opportunity private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).
The Notes will be fully and unconditionally guaranteed by first lien security from Virtu Financial LLC and each of Virtu Financial’s existing and future wholly-owned domestic subsidiaries that guarantee or are borrowers under the Issuer’s first lien credit facilities. The Offer is still subject to terms of purchase and other usual terms.
The Issuers intend to use the proceeds of the Offering to repay the aggregate principal amount of $500 million outstanding under the Issuer’s existing senior secured loan facility.
Concurrent with the completion of the Offering, the Issuer intends to amend its existing credit agreement to (i) provide a $1,245 million senior secured term loan facility, (ii) increase the commitments under the existing senior secured revolving credit facility to $300 million and extend their maturity and (iii) amend certain other provisions of the existing credit agreement.
The Issuer intends to use cash to pay discounts, commissions, fees and expenses of the Offering, the closing of the amended credit facilities and the refinancing of the existing term loan facility.