Summary
This 8-K filing from The NASDAQ OMX Group, Inc. (NDAQ) on January 13, 2010, primarily announces a significant update to the company's financing strategy. The company announced the pricing of an underwritten public offering of senior notes, which was upsized from $700 million to a total of $1 billion. This offering consists of $400 million in 4.00% Senior Notes due 2015 and $600 million in 5.55% Senior Notes due 2020. In conjunction with the increased debt offering, NASDAQ OMX is reducing the size of its previously announced senior unsecured credit facilities. The available borrowings under these facilities will be decreased from $1,250 million to $950 million, comprising a $700 million funded term loan and a $250 million unfunded revolving credit facility. This strategic shift in financing indicates a move towards a larger component of long-term debt financing compared to revolving credit.
Key Highlights
- 1The NASDAQ OMX Group, Inc. upsized its senior notes offering from $700 million to $1 billion.
- 2The offering includes $400 million of 4.00% Senior Notes due 2015.
- 3The offering also includes $600 million of 5.55% Senior Notes due 2020.
- 4The size of the senior unsecured credit facilities was reduced from $1,250 million to $950 million.
- 5The revised credit facilities will consist of a $700 million funded term loan and a $250 million unfunded revolver.
- 6Borrowings under the credit facilities are expected to bear interest at LIBOR plus 2.00%.