NEW YORK - StoneX Group Inc. (NASDAQ:SNEX), a financial services organization, has announced the pricing of a $550 million offering of 7.875% Senior Secured Notes due in 2031. The private offering targets qualified institutional buyers in accordance with Rule 144A, as well as certain international persons under Regulation S of the Securities Act of 1933. The transaction is set to conclude on or about March 1, 2024, subject to standard closing conditions.
The proceeds from the sale of these notes, supplemented by the company's available cash, are earmarked for the redemption of StoneX's existing 8.625% Senior Secured Notes due in 2025. Additionally, the funds will be used to repay the current borrowings under the company's senior secured revolving credit facility and cover related fees and expenses.
The notes will carry guarantees from all of StoneX's subsidiaries that are also guarantors of the company's senior secured revolving credit facility and certain other senior indebtedness. These guarantees are subject to release under certain conditions. The notes, along with their guarantees, will be secured by second-priority liens on nearly all of StoneX's and the guarantors' properties and assets, with some exceptions and permitted liens.
According to the terms of an intercreditor agreement, these second-priority liens will be subordinate to the first-priority liens that secure the company's senior secured revolving credit facility and other first lien obligations. Interest on the notes is to be paid semiannually at a rate of 7.875% per annum.
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