CME Group Inc., the world's leading and most diverse derivatives marketplace, today announced that it has completed the refinancing of its three-year revolving credit and term loan agreement with an original maturity date of August 2011. The facility has been replaced with a $1 billion multi-currency revolving credit agreement with an expiration of January 2014.
Noteworthy elements of the transaction include the following:
- The $420.5 million term loan due to mature in August 2011 was prepaid.
- A combination of commercial paper and available cash was used to fund the prepayment of the term loan.
- An interest rate swap associated with the term loan was terminated, resulting in the acceleration into fourth-quarter of 2010 of approximately $9 million of non-operating expense that otherwise would have been expensed over the remaining life of the loan.
- Including interest saved from early termination of the term loan and net of additional interest expense related to the commercial paper, total savings of approximately $3 million are expected.
Bank of America, N.A. served as administrative agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital, UBS Securities LLC, and Wells Fargo Securities, LLC served as joint lead arrangers.