TD Ameritrade Holding enters $500 million senior revolving facility

By Marisa Wong

Morgantown, W.Va., Feb. 20 – TD Ameritrade Holding Corp. entered into a credit agreement on Feb. 16 for a new $500 million senior unsecured revolving loan facility, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The lenders are led by Wells Fargo Securities, LLC and Barclays Bank plc as joint bookrunners and joint lead arrangers and Wells Fargo Bank, NA as administrative agent.

The maturity date for the revolver is May 17, 2018.

Interest is equal to Libor plus an applicable margin based on the company’s senior unsecured long-term debt ratings. The applicable margin ranges from 87.5 basis points to 150 bps and is currently 125 bps.

The company will also pay an annual commitment fee that varies based on senior unsecured long-term debt ratings. The commitment fee ranges from 8 bps to 20 bps and is currently 15 bps.

Borrowings may be used for working capital needs and for general corporate purposes.

The credit agreement requires the company to maintain a maximum consolidated leverage ratio not exceeding 3.00 to 1.00 and a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00. The company’s broker-dealer subsidiaries are required to maintain compliance with a minimum regulatory net capital covenant.

TD Ameritrade is an Omaha-based securities brokerage firm.

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