Summary
Intercontinental Exchange, Inc. (ICE) announced the establishment of a commercial paper program allowing for the issuance of unsecured commercial paper notes up to an aggregate amount of $1.75 billion. These notes will have maturities ranging from one day to 365 days and will be initially guaranteed by its wholly-owned subsidiaries, ICE and NYSE Euronext Holdings, LLC, to mitigate structural subordination risks. These guarantees will be released once the subsidiaries are no longer obligated under ICE's existing $2.6 billion senior unsecured credit facilities. The primary purpose of this new program is to provide ICE Group with flexible funding for general corporate purposes. The company intends to utilize the initial proceeds to repay outstanding borrowings under its credit facilities, including those incurred for the NYSE Euronext acquisition. The existing credit facilities will also serve as a liquidity backstop for the commercial paper program, offering an additional layer of financial stability.
Key Highlights
- 1ICE has established a commercial paper program with a maximum aggregate issuance of $1.75 billion.
- 2The program allows for the issuance of unsecured commercial paper notes with maturities between one day and 365 days.
- 3Initial issuance of notes will be fully and unconditionally guaranteed by ICE and NYSE Euronext Holdings, LLC.
- 4Guarantees will be released once the subsidiaries are no longer obligated under ICE's $2.6 billion senior unsecured credit facilities.
- 5Proceeds from the program are intended for general corporate purposes, including repaying existing credit facility borrowings.
- 6The existing credit facilities will function as a liquidity backstop for the commercial paper program.
- 7The commercial paper notes are not registered under the Securities Act of 1933.