8-KMaterial AgreementsFinancial EventsExhibits & Filings

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

Filed December 15, 2020For Securities:CBOE

Summary

Cboe Global Markets, Inc. (CBOE) announced the issuance of $500 million 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% 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.

Key Highlights

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

Frequently Asked Questions

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.

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

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.

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.