What is the primary purpose of the new $3.0 billion credit facility?

The primary purpose of the new $3.0 billion senior unsecured revolving credit facility is to provide enhanced financial flexibility for Intercontinental Exchange, Inc. (ICE) and its subsidiaries. It will be used for general corporate purposes, working capital, and to backstop the company's commercial paper program, with specific allocations reserved for the liquidity needs of its various clearing operations.

What happened to ICE's previous credit facilities?

ICE terminated and prepaid its previously existing senior credit facilities. This included a $500 million five-year senior unsecured term loan facility and a $2.1 billion five-year senior unsecured multi-currency revolving credit facility, both originally entered into in November 2011 and scheduled to mature in November 2016. Additionally, a $600 million 364-day senior unsecured credit facility entered into in July 2013 was also terminated. The company funded these prepayments using a combination of commercial paper and available cash.

How does the NYSE Euronext acquisition impact the company's debt and guarantees?

The acquisition of NYSE Euronext has led to a review of existing guarantees. Guarantees previously provided by Old ICE for the ICE Notes and NYSE Legacy Notes have been released as they are no longer necessary. A guarantee of the NYSE Legacy Notes by ICE remains in effect. The new credit facility also includes provisions for the release of guarantees by NYSE Euronext Holdings under certain conditions, such as achieving an investment-grade credit rating, with an expectation that its guarantee of the credit facility will be released upon repayment of the NYSE Legacy Notes.

Are there any immediate borrowings or outstanding amounts under the new credit facility?

As of April 3, 2014, no amounts were drawn or outstanding under the new $3.0 billion senior unsecured revolving credit facility.

ICE 8-K: Material Agreements & Financial Events

Summary

Intercontinental Exchange, Inc. (ICE) has filed an 8-K report on April 7, 2014, detailing the establishment of a new $3.0 billion senior unsecured revolving credit facility, dated April 3, 2014. This facility, which matures in April 2019, provides significant financial flexibility for the company and its subsidiaries, including specific allocations for clearing operations and general corporate purposes. The new facility replaces and consolidates previous credit lines, enhancing the company's liquidity management and refinancing strategy. This strategic move also involves the termination and prepayment of prior credit facilities, including a $500 million term loan and a $2.1 billion revolving credit facility, along with a $600 million 364-day facility. The company utilized commercial paper and existing cash for these prepayments. The report also clarifies the impact of the NYSE Euronext acquisition on guarantees for legacy notes and existing ICE notes, with an expectation that certain guarantees will be released upon repayment of the NYSE legacy notes, signaling a simplification of the company's debt structure.

Key Highlights

1Establishment of a new $3.0 billion senior unsecured revolving credit facility maturing on April 3, 2019.
2The new facility includes an option to increase the aggregate amount by up to $1.0 billion, subject to lender consent and conditions.
3Specific sub-limits within the credit facility are allocated for the liquidity needs of ICE Clear Europe, ICE Clear Credit, ICE Clear U.S., and ICE Clear Canada.
4The majority of the facility, after clearing allocations, is available for working capital, general corporate purposes, and as a backstop for the commercial paper program.
5Termination and prepayment of existing credit facilities, including a $500 million term loan and a $2.1 billion revolving credit facility, and a $600 million 364-day facility.
6Guarantees related to the NYSE Euronext acquisition are being reviewed and potentially released, simplifying financial obligations.
7No amounts were drawn on the new credit facility as of April 3, 2014.

Intercontinental Exchange, Inc. 8-K Report, Material Agreement (Apr 7, 2014)

Summary

Key Highlights

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