Ion Trading Said to Boost Loans for Dividend to $1.185 BillionKrista Giovacco
Ion Trading Technologies Ltd., a provider of trading software, increases the size of loans to support a dividend payment and refinance debt to $1.185 billion from $1.12 billion, according to a person with knowledge of the matter.
A first-lien piece due in seven years is increased to $750 million from $700 million and will pay interest at 3.5 percentage points more than the London interbank offered rate, compared with 4 percentage points previously offered, said the person who asked not to be identified because the information is private. The debt is being sold at 99.5 cents on the dollar, compared with a previous offer of 99 cents.
The loan has call protection of 101 cents for one year and will have a 1.25 percent floor on the lending benchmark.
A second-lien portion due in eight years is increased to $375 million from $355 million and will pay interest at 7.25 percentagee points more than Libor, compared with 7.75 percentage points, with a 1.25 percent floor on the lending benchmark. The loan will be offered at 99 cents on the dollar, compared with a previous offer of 98.5 cents. The debt will have call protection of 102 cents and 101 cents for the first two years.
The financing, which is covenant-light, also consists of a $60 million revolving credit line. Credit Suisse Group AG, the bank arranging the transaction, is asking lenders to commit to the deal by 5 p.m. today in New York.