Virtu Financial announced that it is seeking $500 million in financing to restructure primary debt. According to the company, the first lien notes are intended to improve Virtu Financial's financial position by repaying existing debt and positioning the company for growth.
Virtu restructures debt
According to the press release, Virtu Financial will offer $500 million of first lien notes through its two subsidiaries, VFH Parent LLC and Valor Co-Issuer, Inc. This special offering is intended to repay $500 million of the existing senior secured first lien loan facility. The offering, which is contingent on favorable market conditions and other key requirements, is scheduled to take place in 2031.
Along with this move, Virtu plans to significantly amend the existing credit agreement. The amendments include a $1,245 million senior secured term loan facility and an increase in commitments under the revolving credit facility to $300 million with extended maturities.
If successful, the proceeds from the new term loan will liquidate any remaining amounts from the existing loan, while the cash on hand will cover discounts, fees and other expenses related to these financial maneuvers.
These changes are intended to provide Virtu with greater financial flexibility and reduce its cost of capital. The revised credit facility and the new term loan will streamline its financial operations, allowing the company to effectively capitalize on market opportunities. The company aims to take advantage of the improved credit structure to enhance its liquidity position.
Qualified institutional investors
Virtu stated that these securities are not registered under the Securities Act or any state securities laws and are being offered exclusively to qualified institutional buyers and to certain non-U.S. persons in accordance with the law.
In April, Virtu Financial released its financial performance for the first quarter of 2024, highlighting net income of $111.3 million. The company's impressive performance in the first quarter of 2024 was fueled by a significant increase in revenue, reaching $642.8 million. This expansion was primarily driven by significant trading income of $408.1 million, resulting in a net income margin of 17.3%.
In addition, Virtu Financial has partnered with 360T to offer integrated forex trading analytics and transaction cost analysis services. This collaboration allows 360T clients to leverage Virtu's trading analytics to monitor and optimize their trading activities. Data-driven insights from Virtu's forex trading analytics aim to benefit businesses by improving forex trading strategies.
This article was written by Jared Kirui at www.financemagnates.com.