Virtu plans $1.5 billion term loan for Investment Technology purchase

By Sara Rosenberg

New York, Nov. 7 – Virtu Financial Inc. has received a commitment for a $1.5 billion term loan to help fund its acquisition of Investment Technology Group Inc. and refinance its existing $400 million term loan, according to a company presentation.

Jefferies LLC and RBC Capital Markets provided the debt commitment.

Other funds for the transaction will come from $37 million of cash on hand.

Under the agreement, Investment Technology is being bought for $30.30 per share.

Closing is expected in the first half of 2019, subject to Investment Technology shareholder approval and regulatory approvals.

Total leverage will be 2.76 times based on trailing 12 months adjusted EBITDA as of Sept. 30. The company is targeting leverage of 2 times to 2.25 times by year-end 2020.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets. Investment Technology is a New York-based financial technology company.

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