StoneX Group Announces Pricing of $550 Million Senior Secured Notes Offering

StoneX Group Inc. (NASDAQ:SNEX), a leading financial services organization, has revealed the pricing details of its highly anticipated $550 million offering of 7.875% Senior Secured Notes due in 2031. The private offering is specifically aimed at qualified institutional buyers in accordance with Rule 144A, as well as certain international persons under Regulation S of the Securities Act of 1933.

Transaction Completion Date and Conditions

The transaction is expected to conclude on or around March 1, 2024, and is subject to the standard closing conditions.

Allocation of Proceeds

The proceeds from the sale of these notes, combined with the company's available cash, will be primarily used for the redemption of StoneX's existing 8.625% Senior Secured Notes due in 2025. Additionally, the funds will be utilized to repay the current borrowings under the company's senior secured revolving credit facility, including any related fees and expenses.

Guarantee and Security

All of StoneX's subsidiaries that act as guarantors of the company's senior secured revolving credit facility and other senior indebtedness will provide guarantees for the newly issued notes. These guarantees are subject to release under certain conditions.

Furthermore, the notes, together with their associated 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.

Intercreditor Agreement Terms

According to the terms stated in the intercreditor agreement, the second-priority liens securing the notes will be subordinate to the first-priority liens that safeguard the company's senior secured revolving credit facility and other first lien obligations.

Interest Payments

Interest on the notes will be paid semiannually at a rate of 7.875% per annum.

StoneX Group Inc. is taking strategic steps in securing its financial future by successfully pricing its $550 million offering of 7.875% Senior Secured Notes due in 2031. With the proceeds allocated for debt redemption and coverings its borrowings, StoneX reaffirms its commitment to financial stability and growth.

Analyst comment

This news is neutral. StoneX Group Inc. has announced a $550 million offering of Senior Secured Notes due in 2031. The proceeds will be used to redeem existing notes and repay borrowings. This offering allows the company to manage its debt and interest payments efficiently.