Virtu Financial Plans $500M Senior Notes Offering

Virtu Financial plans a $500M senior notes offering to refinance debt and amend existing credit agreements.

Home » Virtu Financial Plans $500M Senior Notes Offering

Virtu Financial announced today that its subsidiaries, VFH Parent LLC and Valor Co-Issuer, Inc., intend to launch a private offering of $500M in senior notes due in 2031. This move, categorized as an opportunistic private offering, benefits from an exemption from the registration requirements under the Securities Act of 1933, as amended.

Virtu Financial LLC will fully and unconditionally guarantee the notes on a senior secured first-lien basis. Additionally, all of Virtu Financial’s current and future wholly-owned domestic subsidiaries that guarantee or borrow under the Issuer’s senior secured first lien credit facilities will also provide guarantees. However, the success of the offering is contingent upon prevailing market conditions and customary closing conditions.

Virtu Financial Plans $500M Senior Notes Offering

Virtu Financial plans to allocate the proceeds from this offering to repay the $500 million currently outstanding under its senior secured first-lien term loan facility. The refinancing strategy underscores Virtu’s commitment to optimizing its capital structure and reducing its overall debt burden.

In conjunction with the completion of this offering, Virtu Financial intends to significantly amend its existing credit agreement. The proposed amendments include establishing a $1,245 million senior secured first lien term loan facility, increasing the commitments under the existing senior secured first lien revolving credit facility to $300 million, and extending its maturity. Furthermore, other provisions within the current credit agreement will also be revised to align with the company’s financial strategy and operational goals.

The company will use its available cash reserves to cover the discounts, fees, commissions, and expenses associated with the offering, updated credit facilities, and refinancing the existing term loan facility. This comprehensive financial maneuver will fortify Virtu Financial’s balance sheet, enhance liquidity, and provide greater financial flexibility to support its long-term strategic initiatives. Virtu Financial, known for its advanced market-making and trading solutions, continues to adapt its financial strategies to sustain growth and maintain its competitive edge in the financial services industry.

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