Summary
CME Group Inc. (CME) has announced the establishment of a commercial paper program with a capacity of up to $3.0 billion. This program allows CME Group to issue unsecured commercial paper notes with maturities ranging up to 397 days. The primary intended uses for the proceeds from this program are to fund CME Group's ongoing tender offer for its common stock and to cover related fees and expenses, as well as to support the company's merger with CBOT Holdings Inc. Proceeds may also be used for other general corporate purposes. The commercial paper program is backed by a $3.0 billion 364-day revolving loan facility, previously disclosed. This move provides CME Group with significant short-term funding flexibility and liquidity, crucial for executing its strategic initiatives, including the substantial stock repurchase and the significant merger transaction with CBOT Holdings Inc.
Key Highlights
- 1CME Group Inc. established a $3.0 billion commercial paper program to issue unsecured notes.
- 2The program allows for maturities of up to 397 days.
- 3Proceeds will be used to fund a tender offer for CME Group's common stock.
- 4Funds will also support fees and expenses related to the tender offer and the merger with CBOT Holdings Inc.
- 5A $3.0 billion 364-day revolving loan facility serves as a backstop for the commercial paper program.
- 6Lehman Brothers Inc. and Merrill Lynch entities are acting as dealers for the program.
- 7JPMorgan Chase Bank, N.A. is serving as the issuing and paying agent.