Investment Technology Group Inc. entered a 364-day revolving credit agreement amounting to $150 million, with an option to expand to up to $225 million.
The facility carries interest at a rate equal to a base rate, determined by reference to the greatest of the federal funds rate, one-month LIBOR and the overnight bank funding rate, plus a margin of 2.50%. Available but unborrowed amounts are subject to an unused commitment fee of 0.75%.
The credit facility will provide liquidity for Investment Technology Group's U.S. brokerage operations to satisfy clearing margin requirements and to finance temporary positions from delivery failures or nonstandard settlements.
Investment Technology Group will be required to pay incremental interest at the rate of 2.0% in the event of nonpayment.
JPMorgan Chase Bank NA serves as administrative agent, and Bank of America NA and Bank of Montreal are the syndication agents.