Summary
Intercontinental Exchange, Inc. (ICE) has filed an 8-K detailing significant updates to its credit facilities, primarily in preparation for its pending acquisition of MarketAxess Holdings Inc. The company amended its existing $3.9 billion revolving credit facility, extending the maturity date for a significant portion of the commitments to August 20, 2031. Crucially, this amendment also establishes a new $1.5 billion "MarketAxess Revolving Commitment" specifically for the acquisition, subject to limited conditions, underscoring the company's strategic financing for this major transaction. The total aggregate commitments under the revolving facility remain at $3.9 billion. In addition to the revolving credit facility, ICE has entered into a new $2.0 billion delayed draw term loan facility. This facility is also earmarked to finance a portion of the MarketAxess Acquisition, refinance MarketAxess's existing debt, and cover related transaction costs. The term loan facility matures 24 months after its funding date. These financing arrangements, alongside the issuance of senior unsecured notes, have led to the termination of a previously arranged $6.2 billion bridge facility, signaling a significant shift in ICE's funding strategy as it moves forward with the MarketAxess acquisition.
Key Highlights
- 1ICE has amended its $3.9 billion revolving credit facility, extending the maturity date for consenting lenders to August 20, 2031.
- 2A new $1.5 billion "MarketAxess Revolving Commitment" has been established within the revolving credit facility to aid in financing the MarketAxess acquisition.
- 3ICE has secured a new $2.0 billion delayed draw term loan facility to support the MarketAxess acquisition and related expenses.
- 4The combined financing from the amended revolving credit, new term loan, and recent senior unsecured note issuance has led to the termination of a $6.2 billion bridge facility.
- 5Borrowings under the revolving credit facility and term loan facility will bear interest based on SOFR or a base rate, plus applicable margin rates that vary with ICE's credit ratings.
- 6The revolving credit facility includes an option to increase borrowing capacity by up to $1.25 billion, subject to lender consent.
- 7Both the revolving credit agreement and the term loan credit agreement contain customary covenants, including a leverage ratio maintenance covenant.