Summary
On May 19, 2006, The Nasdaq Stock Market, Inc. (Nasdaq) amended and restated its credit facility with Bank of America, N.A. (BOA Credit Facility). These amendments, while largely keeping the existing structure, introduce several key improvements for Nasdaq, including lower applicable interest margins and an increased allowance for Permitted Acquisitions. The total senior secured financing available under the facility remains substantial at $1.2598 billion, comprising a revolving credit facility, a senior term loan facility, and a secured term loan facility. Notably, the amount borrowed under the term loan was reduced by $665.2 million to $434.8 million, reflecting a prepayment using proceeds from Nasdaq's April 2006 equity offering. In parallel, on May 18 and May 19, 2006, Nasdaq significantly increased its stake in the London Stock Exchange (LSE) by acquiring an additional 2,219,250 shares. This bolstered Nasdaq's total ownership in LSE to 54,225,405 shares, representing 25.1% of the issued share capital. These actions suggest Nasdaq is actively managing its debt structure while strategically increasing its investment in key international exchange assets.
Key Highlights
- 1Nasdaq amended and restated its credit facility, the BOA Credit Facility, on May 19, 2006.
- 2The BOA Credit Facility provides up to $1.2598 billion in senior secured financing.
- 3Amendments include lower interest margins and increased allowance for Permitted Acquisitions.
- 4The amount borrowed under the term loan was reduced by $665.2 million to $434.8 million, utilizing proceeds from a recent equity offering.
- 5Nasdaq acquired additional shares in the London Stock Exchange (LSE) on May 18-19, 2006.
- 6Nasdaq's LSE holding increased to 25.1% of issued share capital (54,225,405 shares) following these acquisitions.
- 7The credit facility is secured by substantially all of Nasdaq's assets, with domestic subsidiaries acting as guarantors (excluding regulated broker-dealers).