Subsidiaries of Virtu Financial closed their previously announced incremental $525 million senior secured first lien term loan.
The term loan bears interest at the same rate as its existing term loan, currently LIBOR plus 350 basis points, and will mature on March 1, 2026, the same date as the existing term loan. The company has also entered into a five-year $525 million floating to fixed interest rate swap agreement that effectively fixes its interest payment obligations on the term loan at 4.8% through September 2024.
According to a related 8-K filing, Jefferies Finance served as administrative agent for the transaction. On the closing date, VFH Parent borrowed the incremental term loans and used the proceeds, together with available cash, to redeem all of the $500 million aggregate principal amount of the outstanding 6.750% senior secured second lien notes due in 2022 issued by VFH Parent and Orchestra Co-Issuer, a Delaware corporation and indirect subsidiary of the company, and pay related fees and expenses.
Virtu is a provider of financial services and products that leverages technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients.