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Cboe Global Markets, Inc. 8-K Report, Material Agreement (Dec 15, 2020)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed December 15, 2020
Period End
December 15, 2020
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. Material agreement8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed December 15, 2020. Cited figures are marked; the original filing is the authoritative source.

Cboe Global Markets, Inc. (CBOE) announced the issuance of $500 milliona in 1.625% Senior Notes due 2030 through an underwritten public offering.

The proceeds from this issuance are earmarked for significant strategic initiatives, including financing the acquisition of BIDS Trading, repaying outstanding debt under its term loan and revolving credit facilities, and for general corporate purposes. This move indicates active capital management by Cboe to support its growth strategy and optimize its capital structure. The new senior notes mature in 2030, offering a relatively low interest rate of 1.625%b per annum, payable semi-annually.

While senior unsecured obligations, they are subordinated to secured debt and structurally subordinated to subsidiary debt. The issuance is governed by an indenture with customary covenants and events of default, providing a framework for the company's debt obligations and investor protections.

02—Key points

Key Highlights

  1. Cboe Global Markets issued $500 million in 1.625% Senior Notes due 2030.
  2. Proceeds will fund the acquisition of BIDS Trading.
  3. Funds will also be used to repay existing term loan and revolving credit facility debt.
  4. The Notes mature on December 15, 2030.
  5. The interest rate on the Notes is 1.625% per annum, payable semi-annually.
  6. The Notes are senior unsecured obligations, ranking pari passu with other senior unsecured debt but junior to secured debt.
  7. The Indenture includes standard covenants and events of default, with provisions for repurchase upon a Change of Control Triggering Event.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of issuing these new notes?

    The primary purpose is to finance the acquisition of BIDS Trading, repay a portion of the company's existing term loan and all outstanding amounts under its revolving credit facility, and for general corporate purposes, which may include future acquisitions or debt repayment.

  2. What is the interest rate and maturity date of the new Senior Notes?

    The Senior Notes carry an interest rate of 1.625% per annum and mature on December 15, 2030.

  3. How do these new Notes rank in the company's capital structure?

    The Notes are senior unsecured obligations of Cboe Global Markets, Inc. They rank equally with the company's other existing and future senior unsecured indebtedness. However, they are effectively junior to any secured indebtedness and structurally subordinated to debt issued by the company's subsidiaries.

  4. Are there any provisions for early redemption or repurchase?

    Yes, Cboe may redeem the Notes prior to maturity under certain conditions, subject to a make-whole premium or a 100% principal amount redemption after a specified date. Additionally, the company may be required to offer to repurchase the Notes at 101% of the principal amount upon the occurrence of a Change of Control Triggering Event.

04—Continue

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