Summary
On March 17, 2016, Nasdaq, Inc. entered into a new $400 million senior unsecured term loan credit agreement. This facility, which has a maturity date of November 25, 2019, includes an option to increase the total amount by up to $200 million, subject to lender consent. The funds are designated for general corporate purposes, which may include acquisitions, share repurchases, transaction costs, and refinancing existing debt, specifically their revolving credit agreement from November 2014. The new credit agreement imposes financial and operating covenants, such as maintaining specific interest coverage and leverage ratios, and places limitations on subsidiary debt, asset liens, affiliate transactions, asset dispositions, and dividend payments. The initial $400 million was fully drawn on the day the agreement was signed. This action indicates Nasdaq's strategic use of debt financing to support its growth initiatives and operational flexibility.
Key Highlights
- 1Nasdaq entered into a $400 million senior unsecured term loan credit agreement on March 17, 2016.
- 2The credit facility has a maturity date of November 25, 2019.
- 3There is an option to increase the facility size by an additional $200 million.
- 4Proceeds are intended for general corporate purposes, including acquisitions, share repurchases, and debt repayment.
- 5The agreement includes financial covenants such as minimum interest coverage and maximum leverage ratios.
- 6Operating covenants restrict subsidiary indebtedness, liens, affiliate transactions, asset sales, and dividend payments.
- 7The full $400 million was drawn at the time of the agreement.