LPL Financial Holdings, parent of leading retail investment advisory firm and independent broker-dealer LPL Financial, announced it has completed a debt transaction and entered into an accelerated share repurchase program.

“I’m pleased to announce several steps we have taken to execute on our previously announced leverage and share repurchase plans,” said Matthew Audette, chief financial officer. “As planned, we raised new debt of $700M, amended our covenants to enable higher leverage, extended the maturity of a significant portion of our existing credit facilities, and used $150M of the proceeds to fully pay off our revolver. With our debt transaction now completed, we are moving forward in deploying the proceeds in connection with our previously announced $500M share repurchase program. And our first step is a $250M accelerated share repurchase plan.”

The company’s subsidiary LPL Holdings (LPLH) entered into $700 million of new term loans due November 20, 2022 and extended $631 million of its existing term loans to March 29, 2021. Following the debt transaction, LPLH now has a net leverage ratio of 3.7 times. The minimum interest coverage covenant remains at 3 times adjusted EBITDA. LPLH has a $400 million revolving credit facility, which is now currently undrawn, and the company has more than $200 million in cash available for corporate use.

According to a related 8-K filing, lenders led by JPMorgan Chase as administrative agent, collateral agent, letter of credit issuer and swingline lender provided a new $700 million tranche B term loan and extended the maturity date of a portion of an outstanding tranche B term loan of $631 million by two years.