Summary
This Form 8-K filing by The NASDAQ OMX Group, Inc. (NASDAQ OMX) on January 19, 2010, primarily details significant refinancing activities undertaken by the company. The key event was the completion of a $1 billion public offering of senior notes, consisting of $400 million of 4.00% Senior Notes due 2015 and $600 million of 5.55% Senior Notes due 2020. The net proceeds from this offering, combined with borrowings from a new credit facility and existing cash, were used to pay down and terminate the company's prior credit facility. In conjunction with the note offering, NASDAQ OMX also entered into a new $950 million senior unsecured three-year credit facility. This facility includes a revolving credit commitment, a Tranche A term loan, and a Tranche X term loan. The credit facility is subject to financial and operating covenants, including limits on leverage and debt incurrence. This comprehensive refinancing is designed to enhance NASDAQ OMX's financial flexibility and capital structure.
Key Highlights
- 1NASDAQ OMX completed a $1 billion public offering of senior notes, comprising $400 million in 4.00% Senior Notes due 2015 and $600 million in 5.55% Senior Notes due 2020.
- 2A new $950 million senior unsecured three-year credit facility was established.
- 3The credit facility includes a $250 million revolving commitment, a $350 million Tranche A term loan, and a $350 million Tranche X term loan.
- 4Proceeds from the note offering and new credit facility were used to terminate the company's existing credit facilities.
- 5The new credit facility is subject to financial covenants, including interest expense coverage and maximum leverage ratios.
- 6The company entered into an Underwriting Agreement with Banc of America Securities LLC, J.P. Morgan Securities Inc., and Wells Fargo Securities, LLC for the note offering.
- 7The refinancing aimed to strengthen NASDAQ OMX's capital structure and provide financial flexibility.