BATS cuts spread on $470 million term loan B to Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 17 - BATS Global Markets upsized its six-year term loan B to $470 million from $450 million, reduced pricing to Libor plus 400 basis points from Libor plus 425 bps and added a step-down to Libor plus 375 bps at less than 2.25 times net total leverage, according to a market source.

Also, the original issue discount on the B loan was revised to 99¾ from 99, the source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company's now $570 million credit facility (B1/BB-), up from $550 million, also includes a $100 million three-year revolver.

Commitments were due at 1 p.m. ET on Friday.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund a distribution to BATS shareholders and for general corporate purposes.

Due to the term loan upsizing, less will be drawn under the revolver at close, the source added.

The credit facility is contingent on the completion of the company's merger with Direct Edge Holdings LLC, which is expected to close in the first half of this year.

BATS is a Kansas City, Mo.-based operator of securities markets. Direct Edge is a Jersey City, N.J.-based stock exchange operator.

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