NEW YORK - StoneX Group Inc. (NASDAQ: SNEX), a financial services organization, announced its intention to offer $550 million in Senior Secured Notes due 2031, contingent on market conditions and other factors. The private offering targets qualified institutional buyers in accordance with Rule 144A and certain international persons under Regulation S of the Securities Act of 1933.
The company aims to allocate the net proceeds from this sale, along with existing cash, to redeem its 8.625% Senior Secured Notes due 2025, repay its senior secured revolving credit facility, and cover related fees and expenses. These notes will be guaranteed on a senior secured second lien basis by StoneX's current and future subsidiaries that are also guarantors of the company's other senior debts.
The guarantees on the notes will be subject to release under certain conditions, and the notes will be secured by second-priority liens on nearly all of the company's and guarantors' assets, with specific exceptions and permitted liens. These liens will be subordinate to first lien obligations due to an intercreditor agreement.
Interest on the notes is expected to be paid semi-annually. The company, however, has not guaranteed the completion of the offering or specified the terms.
This article is based on a press release statement from StoneX Group Inc.
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