CBOE Holdings has priced an underwritten public offering of USD650 million of its 3.650 per cent Senior Notes due 2027.
The offering is expected to close on 12 January 2017, subject to customary closing conditions.
CBOE Holdings estimates that the net proceeds from the offering will be approximately USD643 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, 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 23 October 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, Morgan Stanley, Citigroup Global Markets and JP Morgan Securities are acting as joint book-running managers of the offering.