01—Abstract
Summary
Summary of the 8-K filed July 1, 2020. Cited figures are marked; the original filing is the authoritative source.
Cboe Global Markets, Inc. (CBOE) has announced a significant development through its subsidiary's acquisition of European Central Counterparty N.V.
(EuroCCP). This acquisition was accompanied by the establishment of a substantial Euro 1.5 billion committed syndicated multicurrency revolving and swingline credit facility, arranged by Bank of America Merrill Lynch and Citibank. This facility is designed to support EuroCCP's clearing operations, specifically for financing unsettled transactions and meeting other liquidity requirements.
The facility allows for potential increases up to Euro 2.0 billion and is secured by EuroCCP's assets. While no borrowings were outstanding at the time of the agreement, this credit line provides considerable financial flexibility for EuroCCP's operational needs.
02—Key points
Key Highlights
- Cboe Global Markets, Inc. subsidiary acquired European Central Counterparty N.V. (EuroCCP).
- A Euro 1.5 billion committed syndicated multicurrency revolving and swingline credit facility was established for EuroCCP.
- The facility can be increased by up to Euro 500 million, bringing the total potential capacity to Euro 2.0 billion.
- Proceeds from the facility are intended to finance unsettled transaction settlements and other liquidity requirements of EuroCCP.
- Borrowings under the facility are secured by EuroCCP's cash, government bonds, and equity assets.
- The credit facility has a term of 364 days from the agreement date.
- The facility includes customary representations, warranties, covenants, and events of default.
03—Questions
Frequently Asked Questions
What is the primary purpose of the newly established Euro 1.5 billion credit facility?
The Euro 1.5 billion credit facility is primarily for EuroCCP to finance unsettled amounts in connection with the settlement of transactions in securities and other items processed through its clearing system, as well as to finance any other liability or liquidity requirement incurred in the operation of its clearing system.
What is the total potential borrowing capacity under this new facility?
The committed amount is Euro 1.5 billion, with the ability for EuroCCP to increase commitments by up to Euro 500 million, bringing the total potential borrowing capacity to Euro 2.0 billion.
Is Cboe Global Markets, Inc. directly liable for borrowings under the Euro 1.5 billion facility?
Cboe Global Markets, Inc. acts as a guarantor for the scheduled interest and fees on borrowings under the facility. The principal amount of any borrowings is not directly guaranteed by Cboe, but EuroCCP is the borrower.
What assets secure the borrowings under the facility?
Borrowings are secured by cash, eligible government bonds, and eligible equity assets deposited by EuroCCP into secured accounts. Additionally, EuroCCP must maintain a minimum of Euro 500 million in clearing participant contributions, margin amounts, and certain cash equities.
04—Continue