Summary
Intercontinental Exchange, Inc. (ICE) filed an 8-K on November 13, 2015, detailing significant amendments and the establishment of new credit facilities. The company amended its existing $3.0 billion revolving credit facility (the "2014 Credit Facility"), which was subsequently increased to $3.375 billion and extended to mature on November 13, 2020. These amendments, including a one-time permitted borrowing for the acquisition of Interactive Data Holdings Corporation (IDHC) and an increase in the maximum total leverage ratio, aim to provide financial flexibility for the company's strategic initiatives. Furthermore, ICE entered into a new $500 million 364-day senior unsecured revolving credit facility to support its working capital and general corporate purposes, including funding the IDHC acquisition, though it excludes backstopping the commercial paper program. These actions signal ICE's proactive approach to managing its financing needs, particularly around a significant acquisition, and reflect confidence in its ability to meet evolving leverage requirements.
Key Highlights
- 1ICE amended its existing $3.0 billion senior unsecured revolving credit facility, increasing it to $3.375 billion and extending its maturity to November 13, 2020.
- 2The amendments allow for a one-time borrowing to fund the acquisition of Interactive Data Holdings Corporation (IDHC), with adjusted leverage ratio covenants.
- 3A new $500 million, 364-day senior unsecured revolving credit facility was established to support working capital and general corporate purposes, including the IDHC acquisition.
- 4The 364-day facility has phased commitment reductions starting May 13, 2016.
- 5The company can prepay borrowings under both facilities without penalty.
- 6Interest rates are based on LIBOR or a base rate plus a ratings-based margin.
- 7The credit facilities contain customary covenants, including a leverage ratio, and events of default.