Virtu Financial Inc. (VIRT) shares were up 10.27% at $24.27 apiece when the closing bell rang on Monday 10 June 2024. These movements came after the company announced an offering of $500m in senior notes and its addition to the S&P 600.
Virtu Financial Stock Jumps After $500m Lien Notes Offering
The S&P 600 lists small-cap companies with market values of between $250m and $2bn. In its press release, the financial services company said that its subsidiaries VHF Parent LLC and Valor Co-Issuer, Inc. plan to issue $500m in senior first lien notes due 2031.
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The firm further typed this as an “opportunistic private offering” that does not require registration in terms of the US Securities Act. It added:
Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.
Virtu indicated that it guarantees these notes and intends to use the raised funds to repay existing debt. Along with the realisation of this offering, Virtu plans to alter its present credit agreement. These amendments include a $1,245m senior secured first lien term loan and an increase of its revolving credit facility to $300m.
On Saturday 8 June 2024, Simply Wall Street reported that the Virtu share price had grown by 15% over the past three months. Although the company gained some ground, its stocks dropped by 24% in the last three years.
