Bats Global Markets takes $18 million Q2 charge as it completes debt refinancing

Global exchanges operator Bats Global Markets, Inc. (BATS:BATS) has announced that it has successfully completed the refinancing of the company’s outstanding $656 million of term loans and $100 million revolving credit facility, with $650 million of new seven-year term loans and a new $100 million three-yearrevolving credit facility.

As part of the refinancing, Bats will record a pretax charge of $18 million in the second quarter incurred as a result of a loss on the early extinguishment of the amount outstanding under the Existing Credit Agreement.

According to Bats Chief Financial Officer Brian Schell:

This refinancing gives us the ability to take advantage of our stronger credit profile and favorable market conditions to lower interest expense by nearly $7 million in 2016 and $11 million in 2017.

Also, this transaction creates incremental capital allocation flexibility by extending the weighted average maturity of the term financing from 3.5 years to 7 years and by significantly reducing the annual mandatory principal amortization due on the term loan.

Bats went public in April of this year at $19 per share. Since the IPO Bats shares have traded up 35%, to $25.69.

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Bats Global Markets takes $18 million Q2 charge as it completes debt refinancing


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