StoneX Group Inc. (NASDAQ:SNEX), owner of Forex brands such as FOREX.com and City Index, today announced that it intends to offer $550 million in aggregate principal amount of Senior Secured Notes due 2031.
The Notes and the related Note guarantees will be offered in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to certain persons outside the United States pursuant to Regulation S under the Securities Act.
The company intends to use the net proceeds from the sale of the Notes, together with cash on hand, to (i) fund the redemption in full of the company’s 8.625% Senior Secured Notes due 2025, (ii) repay in full current borrowings under the company’s senior secured revolving credit facility, and (iii) pay related fees and expenses associated with the foregoing.
The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior secured second lien basis by each of StoneX’s existing and future subsidiaries that guarantees indebtedness under the company’s senior secured revolving credit facility and certain other senior indebtedness. The guarantees are subject to release under specified circumstances.
The Notes and the related guarantees will be secured on a second priority basis by liens on substantially all of the company’s and the guarantors’ property and assets, subject to certain exceptions and permitted liens. The liens on the company’s and the guarantors’ assets that secure the Notes and the related guarantees will be contractually subordinated to the liens on the company’s and the guarantors’ assets that secure the company’s and the guarantors’ existing and future first lien obligations, including indebtedness under the Company’s senior secured revolving credit facility, as a result of an intercreditor agreement to be entered into by the collateral agent for the Notes and the agent for the Company’s senior secured revolving credit facility.
The Notes are expected to pay interest semi-annually, in arrears.
