CME Group, the world's largest and most diverse derivatives exchange, today announced it has obtained committed financing to support its acquisition of Nymex Holdings, Inc.
The committed financing takes the form of a $3.2 billion bridge financing facility with Bank of America and UBS. In addition, Standard & Poor's has assigned CME Group an "AA" rating on its long-term counterparty credit rating, and S&P and Moody's reaffirmed the company's short-term credit ratings of A-1+ and P-1, respectively. These ratings take into account the effects of the NYMEX transaction.
"We are pleased to have secured committed bank financing for our important NYMEX transaction," said CME Group Chief Financial Officer Jamie Parisi. "Although general credit market conditions remain weak, our ability to secure financing and receive such a strong credit rating demonstrates market support of our acquisition as well as confidence in our overall business performance."
The financing from Bank of America and UBS will be equal with 50 percent ($1.6 billion) coming from each bank.
CME Group and NYMEX have previously announced that they expect their pending transaction to close in the third quarter of 2008, subject to NYMEX member and shareholder approval, CME Group shareholder approval and customary closing conditions. NYMEX shareholders and members and CME Group shareholders will vote on the transaction on August 18, 2008.