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Prospect News home > News index > List of issuers V > Headlines for VHF Parent LLC > News item |
Virtu launches $1.8 billion term loan at SOFR plus 300-325 bps
By Sara Rosenberg
New York, Jan. 4 – Virtu Financial Inc. (VHF Parent LLC) held a lender call at noon ET on Tuesday to launch a $1.8 billion seven-year senior secured covenant-lite first-lien term loan that is talked at SOFR+CSA plus 300 basis points to 325 bps with a 0.5% floor and an original issue discount of 99.5, according to a market source.
CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the source said.
The term loan has 101 soft call protection for six months and amortization of 1% per annum.
Excess cash flow sweep is 50%, with step-downs to 25% and 0% at 3.5x and 3x net first-lien leverage, respectively, beginning with the fourth quarter period ending June 30, 2023.
JPMorgan Chase Bank, Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Jefferies LLC, CIBC and BMO Capital Markets are the lead arrangers on the deal.
Commitments are due at 5 p.m. ET on Jan. 11.
Proceeds will be used to repay an existing senior secured term loan, to fund share repurchases under the company’s authorized repurchase program and for general corporate purposes.
The company has already received commitments for a $250 million revolving credit facility due 2025 to refinance its existing $50 million revolver due 2022.
Pro forma total leverage will be 1.4x, and net leverage will be 0.9x.
Virtu is a New York-based provider of financial services technology.
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