DRW Holdings sets price talk for $500M term loan; commitments due Feb. 23

Lead arranger Jefferies has set price talk on the $500 million first-lien term loan for DRW Holdings LLC following a lender call this morning, according to sources. Commitments will be due Tuesday, Feb. 23.

Price talk on the seven-year term loan is set at L+375-400, with a 0% Libor floor and an original issue discount of 99.5. Lenders will be offered six months of 101 soft call protection. At talk, yield to maturity is approximately 4.09%-4.35%.

Proceeds will be used to refinance the company's $297 million first-lien term loan due November 2026 (L+425, 0% Libor floor) and to expand its trading capital and pay related fees and expenses. The term loan will be governed by a minimum capital ratio covenant and a minimum trading capital ratio covenant.

The company issued its existing term loan in November 2019 to be used for general corporate purposes, including the expansion of trading capital. Current first-lien ratings are BB-/B1, while corporate ratings are BB-/Ba3, with a stable outlook from S&P Global Ratings and a positive outlook from Moody's.

Chicago-based DRW Holdings is a technology-driven principal trading firm.