CBOE Holdings, Inc. (NASDAQ: CBOE) announced that it priced an underwritten public offering of $650 million of its 3.650% Senior Notes due 2027. The offering is expected to close on January 12, 2017, subject to customary closing conditions.
CBOE Holdings estimates that the net proceeds from the offering will be approximately $643 million, after deducting the underwriting discount and estimated offering expenses.
CBOE Holdings intends to use a portion of the net proceeds from the offering to fund, in part, the previously announced acquisition of Bats Global Markets, Inc. (Bats:BATS), including the payment of related fees and expenses and the repayment of Bats’ existing indebtedness, and the remainder for general corporate purposes. Pending final use, CBOE Holdings may invest the net proceeds from the offering in short-term marketable securities. The closing of the offering is expected to occur prior to the consummation of the acquisition. If the acquisition is not consummated for any reason on or prior to October 23, 2017, CBOE Holdings will be required to redeem the notes in a special mandatory redemption. The acquisition is expected to be completed in the first half of this year, subject to the receipt of required stockholder and regulatory approvals and certain other customary closing conditions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers of the offering.
A registration statement (including a prospectus) relating to the securities has been filed with the Securities and Exchange Commission (SEC) and is effective.