Business Context and Reporting Period
Cboe Global Markets, Inc. filed a Current Report on Form 8-K dated July 24, 2026. The filing reports the entry into a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics and Debt Structure
The filing details the establishment of a new revolving credit facility rather than reporting operational financial results such as revenue or profit.
- Facility Size: $400 million senior unsecured five-year revolving credit facility.
- Expansion Option: The company may increase commitments by up to $200 million, for a total potential capacity of $600 million.
- Sub-facility: Includes a $25 million swing line.
- Maturity Date: July 24, 2031.
- Interest Rates:
- Term SOFR/Sonia/Euribor plus a margin of 0.75% to 1.25%.
- Prime rate (subject to a 1% floor) plus a margin of 0% to 0.25%.
Material Changes and Covenants
This agreement amends and restates the Second Amended and Restated Credit Agreement dated February 25, 2022. Key changes include updated legal provisions and expanded permissions for clearing activities.
Financial Covenants:
- Interest Coverage Ratio: Minimum consolidated ratio of 4.00 to 1.00.
- Leverage Ratio: Maximum consolidated ratio of 3.50 to 1.00.
- Step-Up Provisions: The leverage ratio may be temporarily increased to 4.25 to 1.00 on one occasion and 4.00 to 1.00 on another, subject to specific triggering events and return to the 3.50 threshold.
Negative Covenants: Restrictions on incurrence of liens, subsidiary indebtedness, and fundamental changes.
Outlook, Risks, and Unusual Items
The filing does not provide forward-looking guidance on revenue or earnings. It notes that certain lenders and their affiliates are trading permit holders or clearing members on Company exchanges and may engage in investment banking dealings with the Company, receiving customary fees.
Investor Verification Checklist
- Verify the full text of the Third Amended and Restated Credit Agreement attached as Exhibit 10.1 for complete terms.
- Confirm the company's current leverage and interest coverage ratios to ensure compliance with the new 3.50:1.00 and 4.00:1.00 covenants.
- Monitor the company's public debt ratings, as they directly influence the interest rate margins (0.75%-1.25% or 0%-0.25%).
- Review the specific "triggering events" that allow for temporary leverage ratio step-ups.