01—Abstract
Summary
Summary of the 8-K filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
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 milliona 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.
02—Key points
Key Highlights
- Cboe Global Markets, Inc. entered into a Third Amended and Restated Credit Agreement on July 24, 2026.
- The 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).
- The facility includes a $25 million swing line sub-facility.
- Borrowing 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.
- The agreement allows for subsidiaries to be designated as additional borrowers, subject to Cboe's guarantee.
- Key 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.
- The credit facility matures on July 24, 2031, and includes customary covenants, events of default, and indemnification provisions.
03—Questions
Frequently Asked Questions
What is the primary purpose of this filing for Cboe Global Markets, Inc.?
This Form 8-K filing announces Cboe Global Markets, Inc.'s entry into a Third Amended and Restated Credit Agreement. This agreement updates and restates the company's existing credit facility, providing important details about its borrowing capacity, terms, interest rates, and financial covenants.
What is the total borrowing capacity under the new credit agreement, and when does it mature?
The new revolving credit facility provides for a senior unsecured amount of $400 million. The company has the option to increase commitments by up to an additional $200 million, bringing the potential total to $600 million. The agreement matures on July 24, 2031.
What are the key financial covenants that Cboe must adhere to under this agreement?
The company must maintain a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00. Additionally, it must maintain a maximum consolidated leverage ratio of not greater than 3.50 to 1.00, with provisions allowing this maximum to be temporarily increased to 4.25:1.00 and then 4.00:1.00 on separate occasions under specific triggering events and conditions.
Does this agreement impact Cboe's ability to add subsidiaries as borrowers?
Yes, the Third Amended and Restated Credit Agreement allows Cboe to designate one or more of its subsidiaries as additional borrowers under the facility, provided that Cboe guarantees all borrowings and obligations of those subsidiaries.
04—Continue