NYSE Restructures Debt - Analyst Blog
18 Giugno 2012 - 12:45PM
Zacks
In an effort to restructure its debt, NYSE
Euronext (NYX) recently declared that it has arranged a
new senior unsecured credit facility worth $1 billion with a
maturity period of three years. The current credit facility will
allow the company’s fund its general corporate activities till June
15, 2015.
This new credit facility comes as a replacement of its existing
$1.2 billion credit facility that is scheduled to mature on July
31, 2012. The new credit facility ensures uninterrupted and
sufficient funding for the company.
Some of the top banks have joined hands to arrange this credit
facility for NYSE. Citigroup Global Markets Inc.
(C), J.P. Morgan Securities LLC (JPM), Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Bank of China
have agreed to be the joint lead arrangers and book runners for the
financing.
NYSE Euronext has been making constant efforts to reduce its
debt obligation since the last year and we expect its debt
management strategy to empower it with fair liquidity for long-term
growth opportunities.
Presently, NYSE maintains a financial leverage of 26.06%, which
is almost three times more than that of its closest competitor
CME Group Inc. (CME). The company’s long-term debt
stands at $2.07 billion as on March 31, 2012, reducing by almost 4%
from the year-ago quarter.
Being more prone to debt financing, the company’s net margin
stands at 14.88% compared with 57.65% for CME Group. This is not a
favorable situation as higher net margin indicates a better
profitability scenario that helps in boosting investors’
confidence.
NYSE currently retains a Zacks #3 Rank, which translate into a
short-term Hold rating.
CITIGROUP INC (C): Free Stock Analysis Report
CME GROUP INC (CME): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
NYSE EURONEXT (NYX): Free Stock Analysis Report
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