Summary
CME Group Inc. (CME) announced the renewal of its 364-day multi-currency credit facility on November 5, 2015. This facility provides a $7 billion line of credit, with an option to increase it to $10 billion, subject to lender approval. The credit line is designed to offer temporary liquidity to CME, particularly in scenarios involving defaulting clearing members or disruptions in money transfer systems affecting CME's operations.
Key Highlights
- 1CME Group renewed its 364-day multi-currency credit facility on November 5, 2015.
- 2The facility provides a $7 billion line of credit.
- 3There is an option to increase the credit line to $10 billion, contingent on lender agreement.
- 4The credit facility is secured by clearing firm guaranty fund contributions and performance bond assets held by CME.
- 5The purpose of the credit line is to provide temporary liquidity for operational needs, including covering obligations of defaulting clearing members or addressing money transfer system issues.
- 6Bank of America, N.A. serves as the Administrative Agent for the credit facility.
Frequently Asked Questions
The primary purpose of the renewed credit facility is to provide CME Group with temporary liquidity to meet its operational needs. This includes situations where CME may need to cover outstanding obligations of defaulting clearing members or address potential disruptions in money transfer systems that could impact its operations.
The credit facility is initially set at $7 billion. CME Group also has the ability to request an increase in this line of credit up to $10 billion, provided that the participating banks agree to such an increase.
Yes, the credit facility is collateralized by clearing firm guaranty fund contributions and performance bond assets that are held by CME.
Key institutions include Bank of America, N.A. as the Administrative Agent, Deutsche Bank Trust Company Americas as the Collateral Agent, and several other banks acting as Syndication Agents, Document Agent, and Joint Lead Arrangers and Joint Bookrunners, including Bank of China, Barclays Bank PLC, BMO Harris Bank N.A., Citibank, N.A., and others.