WisdomTree details $250 million credit facilities for acquisition

By Sara Rosenberg

New York, Nov. 20 – WisdomTree Investments Inc. has received a commitment for $250 million of senior secured credit facilities to help fund its acquisition of ETF Securities’ European exchange-traded commodity, currency and short-and-leveraged business, according to an 8-K filed late Friday with the Securities and Exchange Commission.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facilities consist of a $50 million three-year revolver and a $200 million three-year term loan.

As committed, pricing on the loans is expected to be Libor plus 175 basis points, subject to a grid based on the company’s ratio of debt to adjusted EBITDA.

The facilities include a maximum debt to EBITDA ratio covenant.

Other funds for the transaction will come from $53 million of cash on hand and stock consideration consisting of 15.25 million shares of common stock and 14,750 shares of a new class of series A non-voting preferred stock that is convertible into an aggregate of 14.75 million shares of common stock.

Closing is expected late in the first quarter of 2018, subject to regulatory approval and other customary conditions.

Pro-forma gross debt leverage will be 1.7 times EBITDA.

WisdomTree is a New York-based exchange-traded fund and exchange-traded product sponsor and asset manager.

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