Virtu Financial finalizes pricing tight to talk for $1.8B term loan B

Arrangers have firmed pricing tight to talk on the $1.8 billion term loan B for Virtu Financial Inc., according to sources. Commitments are due today by 1 p.m. ET, with allocations to follow this afternoon.

Final pricing for the seven-year covenant-lite TLB is set at a spread of 300 basis points over the secured overnight financing rate, plus a credit spread adjustment, or CSA, with a 0.5% floor and an original issue discount of 99.75. That is revised from guidance at launch of a spread in the range of 300-325 bps and an OID of 99.5. The CSA is 10 bps for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. Lenders are offered six months of 101 soft call protection.

At final terms, the yield to maturity is 3.59%, compared to 3.63%-3.89% under the original guidance.

J.P. Morgan, Goldman Sachs, RBC Capital Markets, Barclays, Jefferies, CIBC and BMO Capital Markets are joint bookrunners on the deal. J.P. Morgan is administrative agent.

Facility ratings are B+/Ba2/BB- and corporate ratings are B+/Ba3/BB-, with stable outlooks. VFH Parent LLC is the borrower.

Proceeds from the deal will be used to refinance the company's existing $1.6 billion covenant-lite TLB due March 2026 (L+300, 0% Libor floor), to fund share repurchases and for general corporate purposes. Pro forma total leverage is 1.4x and net leverage is 0.9x, based on adjusted EBITDA of $1.317 billion for the 12 months ended Sept. 30, a lender presentation shows.

The company is also refinancing its existing $50 million revolver that is maturing in 2022 with a new $250 million facility due 2025.

Virtu Financial provides market-making and liquidity services through its proprietary multi-asset and multicurrency technology platform to the financial markets.