Summary
Cboe Global Markets, Inc. (CBOE) has entered into a Third Amended and Restated Credit Agreement, significantly enhancing its financial flexibility. This new agreement provides a $400 million senior unsecured revolving credit facility with a potential to expand to $600 million, maturing in July 2031. This facility offers borrowers options for interest rate calculations, including Term SOFR, SONIA, or EURIBOR for USD, Sterling, and Euros respectively, plus a margin based on public debt ratings. It also includes a $25 million swing line sub-facility and allows for subsidiaries to be added as borrowers with Cboe's guarantee. This updated credit facility is crucial for Cboe's ongoing operations and strategic initiatives. Key financial covenants include a minimum consolidated interest coverage ratio of 4.00:1.00 and a maximum consolidated leverage ratio of 3.50:1.00, with provisions allowing temporary increases to the leverage ratio under specific conditions. The agreement also incorporates updated legal requirements and provides additional permissions for Cboe's clearing activities. Investors should note the facility's substantial size, flexibility in borrowing and interest rate options, and the financial covenants designed to ensure the company maintains a strong financial position.
Key Highlights
- 1Cboe Global Markets, Inc. entered into a Third Amended and Restated Credit Agreement on July 24, 2026.
- 2The agreement establishes a $400 million, five-year senior unsecured revolving credit facility, with an option to increase commitments by up to $200 million ($600 million total).
- 3The facility includes a $25 million swing line sub-facility.
- 4Borrowing interest rates can be based on Term SOFR/SONIA/EURIBOR plus a margin (0.75%-1.25%) or prime rate plus a margin (0%-0.25%), with applicable floors.
- 5The agreement allows for subsidiaries to be designated as additional borrowers, subject to Cboe's guarantee.
- 6Key financial covenants require a minimum consolidated interest coverage ratio of 4.00:1.00 and a maximum consolidated leverage ratio of 3.50:1.00, with flexibility for temporary increases.
- 7The credit facility matures on July 24, 2031, and includes customary covenants, events of default, and indemnification provisions.