Summary
CME Group Inc. (CME) has announced the entry into a new $1 billion multi-currency revolving senior credit facility, dated January 11, 2011. This facility has a maturity of January 11, 2014, and can be increased at the company's option up to $1.75 billion under certain conditions. This new facility replaces CME's previous senior credit facility dated August 22, 2008, which has been terminated and prepaid using commercial paper and cash. The termination of the older facility is expected to result in approximately $3 million in savings, considering interest saved from early termination net of additional interest expense from the commercial paper issuance. The new credit facility includes standard covenants, such as maintaining minimum consolidated net worth, and limitations on liens, subsidiary debt, and fundamental changes. This refinancing initiative demonstrates CME Group's proactive management of its debt structure and liquidity.
Key Highlights
- 1CME Group entered into a new $1 billion multi-currency revolving senior credit facility effective January 11, 2011.
- 2The new facility matures on January 11, 2014.
- 3There is an option to increase the aggregate amount of the facility up to $1.75 billion.
- 4The new credit facility replaces a prior senior credit facility dated August 22, 2008, which was terminated and prepaid.
- 5Prepayment of the 2008 facility was funded by commercial paper and available cash.
- 6The termination of the old facility is projected to result in approximately $3 million in savings.
- 7The new credit facility includes customary covenants and restrictions on liens, subsidiary debt, and fundamental corporate changes.