Summary
Intercontinental Exchange, Inc. (ICE) filed an 8-K on August 20, 2020, to report the completion of a significant debt offering. The company successfully issued approximately $6.5 billion in aggregate principal amount of various senior notes, including floating rate notes and fixed-rate notes with maturities ranging from 2023 to 2060. This substantial capital raise was undertaken to finance the cash portion of the acquisition of Ellie Mae Intermediate Holdings I, Inc. and its subsidiary. Investors should note that this debt issuance significantly increases ICE's leverage to fund a key strategic acquisition. The net proceeds of approximately $6.43 billion, after underwriting discounts and commissions, will be a crucial component of the Ellie Mae transaction, which was announced shortly before this filing. The details of the offering, including the terms of the various notes and the underwriting agreements, are provided in the filing.
Key Highlights
- 1ICE completed a public offering of approximately $6.5 billion in aggregate principal amount of Senior Notes on August 20, 2020.
- 2The offering included Floating Rate Senior Notes due 2023 and fixed-rate Senior Notes with maturities in 2023, 2032, 2040, and 2060.
- 3Net proceeds from the offering were approximately $6.43 billion after underwriting discounts and commissions.
- 4The primary use of the net proceeds is to finance the cash portion of the acquisition of Ellie Mae Intermediate Holdings I, Inc. and Ellie Mae, Inc.
- 5The acquisition of Ellie Mae was announced on August 6, 2020.
- 6The debt was issued under ICE's automatic shelf registration statement and pursuant to an Underwriting Agreement dated August 17, 2020.
- 7The filing includes several exhibits detailing the underwriting agreement, the indenture, and the forms of the various notes issued.