Virtu Financial has announced that it is seeking $500 million in debt financing to restructure an initial debt. According to the company, the senior first lien notes aim to optimize Virtu’s Financial's financial position by repaying existing debt and positioning the company for growth.

Virtu Restructures Debt

According to the press release, Virtu Financial will offer $500 million in senior first lien notes through its subsidiaries, VFH Parent LLC and Valor Co-Issuer, Inc. This private offering is aimed at repaying $500 million of the existing senior secured first-lien term loan facility. The offering, which is contingent on favorable market conditions and other standard prerequisites, is due in 2031.

Besides this step, Virtu plans to significantly amend its existing credit agreement. The amendments include a $1,245 million senior secured first lien term loan facility and an increase in the commitments under its revolving credit facility to $300 million, with an extended maturity.

If successful, proceeds from the new term loan will reportedly clear any remaining amounts from the existing term loan, while cash on hand will cover discounts, fees, and other expenses related to these financial maneuvers.

These changes aim to provide Virtu with greater financial flexibility and reduce the cost of capital. The amended credit facilities and the new term loan will streamline their financial operations, positioning the firm to effectively leverage market opportunities. The company aims to utilize the improved credit structure to bolster its liquidity position.

Qualified Institutional Investors

Virtu mentioned that these notes are not registered under the Securities Act or any state securities laws and are being offered exclusively to qualified institutional buyers and to certain non-US persons as per the law.

In April, Virtu Financial released its financial performance for the first quarter of 2024, highlighting a net income of $111.3 million. The firm’s impressive performance in the first quarter of 2024 was boosted by a significant revenue increase, reaching $642.8 million. This expansion was primarily driven by a substantial trading income of $408.1 million, resulting in a net income margin of 17.3%.

Additionally, Virtu Financial has partnered with 360T to offer integrated FX Trading Analytics and Transaction Cost Analysis services. This collaboration allows 360T clients to leverage Virtu’s Trading Analytics for monitoring and optimizing their trading activities. The data-driven insights from Virtu's FX Trading Analytics aim to benefit corporations by optimizing FX trading strategies.