NEW YORK, Oct. 24, 2016 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT ) a leading technology-enabled market maker and liquidity provider to the global financial markets, today announced the opportunistic refinancing of its term loan resulting in an extended maturity and lower cost.
The new terms include a decrease in the interest rate of approximately 1.00% per annum and a new maturity of 2022. The new term loan has an interest rate of LIBOR plus 3.5% with a LIBOR floor of 0.75% and a maturity of 2022. Terms of Virtu's prior term loan included an interest rate of LIBOR plus 4.25%, a LIBOR floor 1.00% and a maturity of 2019.
"We are pleased to announce this opportunistic refinancing of our term loan," said Douglas Cifu, Chief Executive Officer of Virtu. "Our ability to extend the maturity of our debt to 2022 while meaningfully reducing the costs of the term loan demonstrates the confidence our investors have in the long term stability of our business model."
The transaction is anticipated to be net leverage neutral to Virtu as the additional principal will be used to offer to refinance the $34 million loan incurred in connection with the acquisition of a minority stake in SBI Japannext, Co., Ltd. Gross proceeds will also be used by Virtu to repay the principal of existing term loan and to pay fees and expenses related to the refinance transaction. If the lender in the SBI Japannext transaction declines the prepayment, the excess cash from the financing will be used for general corporate purposes.
The principal amount of the new term loan is $540 million. The bulk of the new term loan is due and payable upon maturity in 2022 with 1% of principal required to be amortized per year, as was the case with Virtu’s prior term loan. All other material terms remain the same as the prior term loan.
J.P. Morgan acted as lead bookrunner and arranger in the transaction.
About Virtu Financial, Inc.
Virtu is a leading technology-enabled market maker and liquidity provider to the global financial markets. We stand ready, at any time, to buy or sell a broad range of securities and other financial instruments, and we generate revenue by buying and selling securities and other financial instruments and earning small amounts of money on individual transactions based on the difference between what buyers are willing to pay and what sellers are willing to accept, which we refer to as "bid/ask spreads," across a large volume of transactions. We make markets by providing quotations to buyers and sellers in more than 12,000 securities and other financial instruments on more than 235 unique exchanges, markets and liquidity pools in 36 countries around the world. We believe that our broad diversification, in combination with our proprietary technology platform and low-cost structure, enables us to facilitate risk transfer between global capital markets participants by supplying liquidity and competitive pricing while at the same time earning attractive margins and returns.
Cautionary Note Regarding Forward-Looking Statements
The foregoing information contains certain forward-looking statements that reflect the company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the company on the date of this release. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.
Contact: Investor Relations Andrew Smith Virtu Financial, Inc. (212) 418-0195 investor_relations@virtu.com
Media Relations media@virtu.com
