StoneX Group Inc. (NASDAQ: SNEX) has disclosed the pricing details for its upcoming offering of $550 million in aggregate principal amount of 7.875% Senior Secured Notes due 2031. This private offering is aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended, and to certain international persons in compliance with Regulation S under the same act. The company anticipates the offering to conclude around March 1, 2024, pending the satisfaction of standard closing conditions.
The net proceeds from the sale of these Senior Secured Notes, alongside available cash, are earmarked for several key financial moves by the company. These include the complete redemption of the company’s 8.625% Senior Secured Notes due in 2025, full repayment of current borrowings under its senior secured revolving credit facility, and covering related fees and expenses.
The Notes will come with full and unconditional guarantees from StoneX Group’s existing and future subsidiaries that also guarantee debt under the company’s senior secured revolving credit facility and certain other senior debts. These guarantees, however, could be released under specific conditions. The Notes, alongside their guarantees, will be secured with second-priority liens on nearly all of StoneX Group’s and the guarantors’ assets, with some exceptions and allowed liens. These liens will be contractually subordinate to first lien obligations due to an intercreditor agreement between the collateral agent for the Notes and the agent for the company’s senior secured revolving credit facility.
Interest on the Notes will be payable semiannually at a rate of 7.875% per annum.
This announcement does not constitute an offer to sell or a solicitation to buy the Notes, guarantees, or any other security. Sales of the Notes and guarantees will proceed exclusively through a private offering memorandum.
The offering and sale of the Notes and related guarantees have not been registered under the Securities Act or any state securities laws, and may not be offered or sold within the United States without registration or an exemption from registration requirements.
