Summary
CME Group Inc. (CME) filed an 8-K on December 4, 2012, reporting on amendments and extensions to its credit facilities. The company amended and restated its senior revolving credit facility, increasing the total commitment from $1.04 billion to $1.5 billion, with an option to further increase it to $2.25 billion. Crucially, the maturity date of this facility was extended from January 11, 2014, to January 12, 2016, providing greater financial flexibility and a longer-term funding source. In addition to the senior facility, CME Group also entered into a new $250 million revolving credit facility specifically for the issuance of standby letters of credit. This facility is co-terminous with the amended senior facility, maturing on January 12, 2016. Both credit agreements include standard covenants, representations and warranties, and events of default, such as maintaining minimum consolidated net worth and limitations on liens and subsidiary indebtedness, which are typical for corporate financing arrangements. These actions demonstrate CME Group's proactive approach to managing its liquidity and debt structure.
Key Highlights
- 1CME Group amended and extended its senior revolving credit facility, increasing the total commitment to $1.5 billion from $1.04 billion.
- 2The maturity date for the senior credit facility was extended from January 11, 2014, to January 12, 2016.
- 3The company retains the option to increase the senior credit facility further, up to an aggregate of $2.25 billion, subject to customary conditions.
- 4A new $250 million revolving credit facility was established for standby letters of credit.
- 5The letter of credit facility has the same maturity date as the senior credit facility (January 12, 2016).
- 6Both credit agreements contain customary covenants, including minimum net worth requirements and restrictions on liens and subsidiary debt.
- 7The credit facilities are prepayable without premium or penalty.