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Cboe Global Markets, Inc. 8-K Report, Material Agreement (Mar 23, 2018)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed March 23, 2018
Period End
March 22, 2018
Security
CBOE
In the record · 2016–202610-K1110-Q328-K123

CBOE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 123 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed March 23, 2018. Cited figures are marked; the original filing is the authoritative source.

Cboe Global Markets, Inc. (CBOE) has announced the entry into a new $300 milliona senior unsecured term loan facility, replacing an existing credit agreement.

This strategic refinancing aims to optimize the company's debt structure, with the new loan maturing on December 15, 2021. While the commercial terms remain largely consistent, the new agreement reflects updated interest rates and maturity dates. The primary purpose of this new facility is to repay the outstanding $300 millionb from the previous term loan.

This move is generally viewed positively by investors as it demonstrates proactive debt management and potentially secures more favorable borrowing conditions or extends maturity profiles. The covenants and terms are standard for this type of agreement, including financial covenants related to interest coverage and leverage ratios, ensuring continued financial discipline.

02—Key points

Key Highlights

  1. Cboe entered into a new $300 million senior unsecured term loan facility on March 22, 2018.
  2. The new facility was used to repay an existing $300 million term loan agreement.
  3. The new loan matures on December 15, 2021, while the previous loan was set to mature on February 28, 2022.
  4. Commercial terms are substantially unchanged, with adjustments to interest rates and maturity dates.
  5. The agreement includes customary representations, warranties, and covenants, including financial covenants for interest coverage (min 4.00x) and leverage (max 3.50x).
  6. Interest rates are variable, tied to LIBOR or Bank of America's prime rate, plus a margin based on Cboe's public debt ratings.
  7. The previous term loan agreement was terminated upon full repayment of the outstanding balance.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of the new Term Loan Agreement?

    The primary purpose of the new $300 million Term Loan Agreement is to repay the outstanding $300 million indebtedness under Cboe's previous term loan agreement, dated December 15, 2016. This is a refinancing activity.

  2. When does the new loan mature, and how does this compare to the old loan?

    The new Term Loan Agreement matures on December 15, 2021. The existing Term Loan Agreement, which was terminated, was set to mature on February 28, 2022. So, the new loan has an earlier maturity date.

  3. What are the key financial covenants Cboe must adhere to under the new agreement?

    Cboe must meet a quarterly financial test requiring a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00 and a maximum consolidated leverage ratio of not greater than 3.50 to 1.00. Failure to meet these could trigger default clauses.

  4. How are interest rates determined for the new loan?

    Interest rates are variable and, at Cboe's option, can be based on either LIBOR (with a margin of 1.00% to 1.50%) or Bank of America's prime rate (with a margin of 0% to 0.50%). The specific margin is determined by Cboe's public debt ratings.

04—Continue

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