Summary
CME Group Inc. (CME) filed an 8-K on October 15, 2009, reporting an amendment to its 364-day revolving credit facility. The amendment, effective October 9, 2009, extended the termination date of the credit facility from October 9, 2009, to December 9, 2009. This facility, totaling $600 million, is designed to provide temporary liquidity to CME, particularly in situations involving defaulting clearing members or disruptions in money transfer systems. The credit line is secured by clearing firm security deposits and performance bonds held by CME. Furthermore, the amendment allows for a potential increase in the credit facility's size to $1 billion, subject to the discretion of CME's Board of Directors and the agreement of the participating banks. While the extension provides a short-term extension of liquidity options, investors should note that the decision to increase the facility rests with the banks. The primary purpose of this facility is to ensure operational stability by providing access to funds under specific, defined circumstances.
Key Highlights
- 1CME Group Inc. amended its 364-day revolving credit facility.
- 2The amendment extended the facility's termination date from October 9, 2009, to December 9, 2009.
- 3The credit facility has a maximum amount of $600 million, with an option to increase to $1 billion.
- 4The facility is intended to provide temporary liquidity for CME under specific circumstances, such as clearing member defaults or money transfer system issues.
- 5The credit line is collateralized by clearing firm security deposits and performance bonds.
- 6An increase in the credit line to $1 billion is subject to CME's Board approval and the participating banks' consent.
- 7This filing primarily concerns the extension and terms of an existing credit agreement, not new financial performance data.