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Virtu Reprices Senior Secured First Lien Term Loan Lower and Enters into a Floating to Fixed Interest Rate Swap

Written by Customer Service on . Posted in Public Companies.

Virtu will save $26 million per year or 23% in interest expense as a result of debt optimizations since the ITG acquisitionNEW YORK, Feb. 10, 2020 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ: VIRT) (“Virtu” or the “Company”), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, announces today that its subsidiary successfully repriced its $1.925 billion senior secured first lien term loan (the “Term Loan”).  The Term Loan was repriced 50 basis points lower, at LIBOR plus 300 basis points, with Original Issue Discount of 99.875%, upon satisfaction of customary closing conditions, expected by March 2, 2020.  This loan matures in March 2026.
The Company has also entered into a five-year $1.0 billion floating to fixed interest rate swap agreement that will effectively fix our interest payment obligations on the incremental Term Loan financing at 4.40% through February 2025, subject to customary terms and conditions.This is in addition to a five-year $525 million floating to fixed interest rate swap agreement that was entered into in the 4th quarter of 2019, a concurrent conversion of 6.75% senior secured second lien notes to the upsized Term Loan and a cumulative net pay down of $75 million on the Term Loan, since the ITG acquisition.  In conjunction with this repricing, interest payment obligations on this portion of the debt were fixed at 4.30% through September 2024, subject to customary terms and conditions.Collectively, these actions resulted in a 4.37% interest rate on $1.525 billion of the Term Loan, fixed for five years, with the remaining $400 million of the Term Loan remaining floating at a 0.50% lower rate (L+300).As a result of these transactions, the Company will save approximately $26.1 million in interest expense annually, or approximately 23% of interest costs on term debt.About Virtu Financial, Inc.Cautionary Note Regarding Forward-Looking StatementsThis press release contains forward-looking statements. These forward-looking statements are subject to numerous uncertainties and factors relating to the Company’s operations and business environment, as well as uncertainties relating to the Term Loan and interest rate swap agreement. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

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