AssetMark Closes $250 Million Revolving Credit Facility, Retires Existing Term Loan
AssetMark Financial Holdings, Inc. (NYSE: AMK) announced a new Credit Agreement with six banks, establishing a $250 million secured revolving Credit Facility.
Sentiment and the balance of points
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Rhea-AI Summary
AssetMark Financial Holdings, Inc. (NYSE: AMK) announced a new Credit Agreement with six banks, establishing a $250 million secured revolving Credit Facility. The company will draw $75 million from the new facility to pay off its existing $124 million term loan, which carried a LIBOR plus 3.00% interest rate. The new agreement offers lower borrowing costs with an initial interest rate of LIBOR plus 2.00%. The four-year Credit Facility aims to enhance financial flexibility for strategic growth and acquisitions in 2021.
Positive
- Establishment of a $250 million secured revolving Credit Facility.
- Reduction of borrowing costs from LIBOR plus 3.00% to LIBOR plus 2.00%.
- Increasing financial flexibility supports strategic growth and acquisitions.
Negative
- None.
Details
News Market Reaction – AMK
The recorded move for AMK in the trading session of this news was -2.27%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CONCORD, Calif., Jan. 04, 2021 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) announced today that it has entered into a new Credit Agreement with six banks, including Bank of Montreal serving as administrative agent. The Credit Agreement provides for a
Concurrently, AssetMark will draw down
The new Credit Facility has a four-year maturity. Interest will be based on LIBOR plus an applicable margin, with the applicable margin being tied to the Company’s total leverage ratio. At the initial funding levels, the interest rate will be LIBOR plus
“We are very excited about this opportunity to both significantly increase our access to capital and reduce our on-going borrowing costs,” said Gary Zyla, EVP, Chief Financial Officer. “With this added financial flexibility, we plan to continue the strategic growth of our business, both through acquisitions, as well as investments in our operations to further drive organic growth.”
Under the Credit Agreement, BMO Capital Markets Corp., JPMorgan Chase Bank, N.A., U.S. Bank National Association and Wells Fargo Securities, LLC acted as joint lead arrangers and joint bookrunners.
Zyla added, “We are extremely grateful to our on-going bank partners and look forward to the opportunities ahead of us in 2021.”
About AssetMark Financial Holdings, Inc.
AssetMark is a leading provider of extensive wealth management and technology solutions that help financial advisors meet the ever-changing needs of their clients and businesses. Through AssetMark, Inc., its investment adviser subsidiary registered with the U.S. Securities and Exchange Commission, AssetMark operates a platform that brings together fully integrated technology, personalized and scalable service, and curated investment solutions to support financial advisors and their businesses. For more than 20 years, AssetMark has focused on offering the solutions and services that help financial advisors grow. AssetMark had
SOURCE: AssetMark Financial Holdings, Inc.
Contacts
Investors:
Taylor J. Hamilton, CFA
Head of Investor Relations
InvestorRelations@assetmark.com
Media:
Chris Blake
MSR Communications
chris@msrcommunications.com
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