Ameritrade secures funding for TD Waterhouse acquisition

Source: Ameritrade

Ameritrade Holding Corporation (Nasdaq:AMTD) today announced that it has obtained a commitment for financing from its underwriting group led by Citigroup Corporate and Investment Banking and including Merrill Lynch, UBS and JPMorgan.

Receipt of the funds from the underwriting group, together with funds to be received from TD Waterhouse, will be used to pay the $6 special dividend and will also provide approximately $300 million for general corporate needs. The commitment provides the Company with the flexibility of prepaying borrowings without penalty.

The Company has also received the following ratings:
Moody's: Ba1
Standard & Poor's: BB
Fitch: Expects BB

"The commitment and ratings we have received are strong indicators of the strategic benefits of the TD Waterhouse transaction and the financial strengths of the combined company," said Mike Chochon, treasurer of Ameritrade.

The Company expects the financing to occur prior to the expected Jan 24 TD Waterhouse closing.

Comments: (0)