Summary
CME Group Inc. (CME) filed an 8-K on August 28, 2008, reporting the successful completion of its acquisition of NYMEX Holdings, Inc. (NYMEX) on August 22, 2008. This significant transaction was financed through a substantial senior credit facility totaling $1.416 billion, which includes both term and revolving loan components, as well as a $1.284 billion bridge credit facility. The proceeds from these facilities were used to fund the acquisition, refinance existing NYMEX debt, and provide ongoing working capital for CME Group and its subsidiaries. The acquisition marks a major strategic move for CME, integrating the operations of two key players in the derivatives and futures markets. The filing also details the consideration offered to NYMEX shareholders, which included a mix of cash and CME Group Class A common stock, subject to proration. Following the merger, NYMEX Holdings ceased to exist as a separate entity and now operates as a wholly-owned subsidiary of CME Group. Additionally, the report announces the appointment of three former NYMEX directors to CME Group's board and the declaration of a special dividend of $5.00 per share, payable to shareholders of record on September 25, 2008.
Key Highlights
- 1CME Group Inc. has successfully completed the acquisition of NYMEX Holdings, Inc. effective August 22, 2008.
- 2The acquisition was financed by a $1.416 billion Senior Credit Facility and a $1.284 billion Bridge Credit Facility.
- 3Proceeds from the credit facilities were used for the acquisition, refinancing NYMEX debt, and general corporate purposes.
- 4NYMEX Holdings, Inc. has been delisted from the New York Stock Exchange following the merger.
- 5NYMEX Holdings common stockholders received a mix of cash and CME Group Class A common stock, subject to proration.
- 6Three former NYMEX Holdings directors have been appointed to the CME Group board of directors.
- 7CME Group declared a special dividend of $5.00 per share of Class A and Class B common stock.