Cboe Global Markets extends maturity of term loan, adjusts pricing

By Marisa Wong

Los Angeles, July 1 – Cboe Global Markets, Inc. entered into a second amendment on June 25 to its term loan credit agreement dated March 22, 2018 with Bank of America, NA as administrative agent and initial lender to extend the maturity, allow an additional draw and to modify pricing, according to an 8-K filing with the Securities and Exchange Commission.

Cboe extended the maturity date to Dec. 15, 2023 from Dec. 15, 2021.

The amendment also allows an additional draw of $110 million, which the company borrowed on June 25 in order to fund a portion of its previously announced acquisition of Chi-X Asia Pacific Holdings, Ltd.

In addition, the amendment modifies the applicable margin paid on the loans to 65 basis points regardless of the company’s debt rating.

Libor replacement provisions were added as well, generally transitioning to a hardwired approach based on SOFR.

The company increased the amount of indebtedness some of its subsidiaries may incur to the greater of $350 million and 35% consolidated EBITDA for four consecutive quarters from the greater of $250 million and 35% consolidated EBITDA for four consecutive quarters.

The amendment allows the company to increase the maximum permitted consolidated leverage ratio to 4.00 to 1.00 (from 3.50 to 1.00) for four consecutive fiscal quarters after some acquisitions, provided this increase may be made only once.

The company also made changes to other provisions to be consistent with its revolving credit agreement.

The exchange holding company based in Chicago.

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