NEW YORK - Virtu Financial, Inc. (NASDAQ:VIRT), a prominent financial services firm, has announced its intent to issue $500 million in senior first lien notes due 2031 through its subsidiaries, VFH Parent LLC and Valor Co-Issuer, Inc. This private offering is exempt from the registration requirements of the Securities Act of 1933.
The notes will be guaranteed by Virtu Financial LLC and its wholly owned domestic subsidiaries, which also guarantee or are borrowers under the company's senior secured first lien credit facilities. The offering is subject to market conditions and other customary factors.
Proceeds from the offering are earmarked to repay $500 million of the principal amount outstanding under the company's existing senior secured first lien term loan facility. Alongside this, Virtu Financial intends to amend its credit agreement to include a new $1.245 billion senior secured first lien term loan facility, increase its existing senior secured first lien revolving credit facility to $300 million, and extend its maturity, among other amendments.
The successful closing of the amended credit facilities will see the new term loan facility used to repay all remaining amounts under the current term loan facility. Virtu Financial also plans to use cash on hand to cover costs associated with the offering and the refinancing of the existing term loan facility.
This offering and the closing of the amended credit facilities are not contingent upon each other. The notes, not registered under the Securities Act or any state securities laws, will be offered to qualified institutional buyers and certain non-U.S. persons outside the United States.
Virtu Financial leverages advanced technology to offer execution services, data, analytics, and connectivity products, operating in multiple asset classes across global markets.
The company's forward-looking statements indicate no obligation to update any information to reflect actual results or changes in factors affecting such information. Potential risks include market fluctuations, the performance of trading platforms, competition, and regulatory changes.
This news is based on a press release statement from Virtu Financial, Inc.
In other recent news, Virtu Financial Inc . has been making headlines with its potential debt refinancing plan and impressive first-quarter results. The financial services firm is exploring a debt refinancing strategy through a possible offering of senior secured first lien notes. The proceeds from this potential offering are intended to pay down a portion of Virtu's senior secured first lien term loan facility, due in 2029.
Furthermore, Virtu Financial reported robust Q1 results, with adjusted earnings per share (EPS) of $0.76 and adjusted net trading income averaging $6 million per day. The company also announced executive leadership changes, with Cindy Lee set to become the new Chief Financial Officer. In addition, the firm confirmed an additional $500 million authorized for share repurchases.
Virtu's cryptocurrency and ETF block market making operations stood out, demonstrating exceptional results. The company's forward-looking statements indicate a commitment to maintaining cash operating expenses within the recent historical range and a dedication to its $0.24 per share quarterly dividend and share repurchase program. These recent developments provide a snapshot of Virtu Financial's current financial health and strategic initiatives.
InvestingPro Insights
Virtu Financial, Inc. (NASDAQ:VIRT), amid its strategic financial maneuvers, exhibits a solid financial position with a market capitalization of approximately $1.95 billion. The company's commitment to shareholder value is reflected in its aggressive share buyback program, as noted in one of the InvestingPro Tips. This aligns with its history of maintaining dividend payments for 10 consecutive years, boasting a notable dividend yield of 4.36% as of the last payout.
Analyzing the company's performance metrics, Virtu Financial has a Price/Earnings (P/E) ratio of 15.64, adjusted to 14.45 on a last twelve months basis as of Q1 2024. The adjusted P/E ratio offers a more favorable view of the company's earnings potential relative to its share price.
Moreover, the firm's strong return over the last three months, with a 16.33% price total return, underscores its recent positive market performance. Analysts remain optimistic, with 6 analysts having revised their earnings expectations upwards for the upcoming period, and they predict the company will maintain profitability this year.
For investors seeking more in-depth analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/VIRT. Subscribers can access a wealth of information, including analyst revisions and sales forecasts. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these resources at hand, investors can make more informed decisions regarding Virtu Financial's place in their portfolio.
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