TMX Group plans $1 billion of term loans for VettaFi purchase

By Sara Rosenberg

New York, Dec. 14 – TMX Group Ltd. plans on getting up to $1 billion of term loans to fund its acquisition of the remaining roughly 78% of the common units of VettaFi Holdings LLC, according to a news release.

The debt is split between a $600 million 12-month term loan, an up to $200 million 18-month term loan and a $200 million 24-month term loan.

The company plans to convert about $600 million of the term loan debt to debentures in year one, a company presentation said.

National Bank of Canada, Toronto-Dominion Bank and Bank of Montreal are providing the new committed credit facilities.

Leverage is expected to be about 3.5x after closing and the repayment of VettaFi debt.

Under the agreement, the remaining roughly 78% of VettaFi common units are being purchased for $848 million. This brings the total amount to be paid for full ownership to $1.03 billion, including the strategic investments TMX made in VettaFi in the first half of 2023 for around 22% of the common units.

TMX will assume $100 million of VettaFi debt, which is expected to be retired with funds from the new term loan.

Closing is expected in January, subject to customary conditions.

Toronto-based TMX operates global markets, and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. VettaFi is a New York-based indexing, digital distribution, analytics and thought leadership company.

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