Virtu Financial LLC, an electronic trading firm, is seeking a $260 million term loan to refinance debt, according to a person with knowledge of the transaction.
The debt maturing in 2016 will pay interest at 4.5 percentage points more than the London interbank offered rate and will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said.
Credit Suisse Group AG is arranging the financing for the New York-based company, according to the person.
The company’s existing term loan pays interest at 6 percentage points more than the London interbank offered rate with a 1.5 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 98 cents on the dollar and was quoted at 102.25 cents today, the data show.
Chris Concannon, a spokesman for Virtu Financial, declined to comment.