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Virtu Financial units price incremental senior secured first lien term loan

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Virtu Financial units price incremental senior secured first lien term loan

Virtu Financial Inc.'s subsidiaries priced an incremental $525 million senior secured first lien term loan at London interbank offered rate plus 350 basis points.

The term loan will mature March 1, 2026, the same date as the company's existing term loan.

The company has entered into a five-year $525 million floating-to-fixed interest rate swap agreement that will effectively fix its interest payment obligations on the incremental term loan financing at 4.8% through September 2024, subject to customary terms and conditions, including the closing of the incremental term loan.

The term loan is expected to close in October. Virtu Financial will use the proceeds of the term loan, together with cash on hand, to redeem the 6.75% senior secured second lien notes due 2022 of VFH Parent LLC and Orchestra Co-Issuer Inc.

VFH Parent and Orchestra Co-Issuer previously delivered a conditional notice of redemption to holders of their outstanding existing notes, which provides for the redemption of the notes on Oct. 9. The redemption price will be 103.375% of the principal amount of the notes and accrued and unpaid interest to the redemption date.

The redemption is subject to, among other things, VFH Parent and Orchestra Co-Issuer or their affiliates consummating a debt financing transaction in an amount of at least $525.0 million and the issuers having received funds in connection with the debt financing, together with cash on hand, sufficient to repurchase the existing notes.