Marex Group plc Announces Pricing of U.S.$500 Million Senior Notes Offering

Rhea-AI Summary

Marex Group (Nasdaq: MRX) has announced the pricing of a U.S.$500 million senior notes offering with a 5.829% interest rate, due in 2028. The notes, priced at 100% of principal value, will be issued as senior unsecured obligations. The offering is expected to close around May 8, 2025. The company plans to use the proceeds for working capital, incremental growth funding, and general corporate purposes. CEO Ian Lowitt highlighted strong investor interest in the notes, reflecting confidence in Marex's client-driven business model and liquidity profile. Barclays, Goldman Sachs & Co. LLC, and Jefferies are serving as joint book-runners for the offering, which is being made through Marex's existing shelf registration statement.

Positive

• Strong investor interest demonstrates market confidence in the company
• Successful debt issuance diversifies funding sources
• Proceeds will support working capital and growth initiatives
• Enhanced liquidity position to support client operations

Negative

• Additional debt burden with 5.829% interest rate
• Increased financial obligations may impact future cash flows
• Potential exposure to interest rate risk through 2028

Insights

Financial Markets Analyst

Marex secures $500M in debt funding at 5.829% interest, boosting liquidity for growth while increasing financial leverage.

Marex has successfully priced a $500 million senior notes offering with a 5.829% interest rate maturing in 2028. The pricing at 100% of principal value suggests strong market confidence in the firm's credit profile. These 3-year notes represent unsecured senior debt, placing them high in the capital structure hierarchy but without specific collateral backing.

This issuance serves multiple strategic purposes. First, it diversifies Marex's funding sources beyond whatever existing financing channels they maintain. Second, it provides substantial liquidity enhancement, which is particularly crucial for financial services firms operating across commodity, equity, fixed income, and FX markets where client support often requires significant capital availability.

The strong investor interest cited by CEO Ian Lowitt indicates positive market reception, suggesting the debt markets view Marex's business model and financial fundamentals favorably. The involvement of top-tier underwriters (Barclays, Goldman Sachs, and Jefferies) further validates the offering's institutional appeal.

While the additional capital provides flexibility for the firm's stated purposes of funding working capital and growth initiatives, it also increases Marex's financial leverage and adds approximately $29.1 million in annual interest obligations. The relatively short 3-year maturity suggests a medium-term strategic horizon while limiting long-term interest rate exposure.

This debt issuance represents standard financial management for a growth-oriented financial services firm rather than an exceptional development. It strengthens Marex's capital position while imposing the standard obligations and constraints that come with debt financing.

NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- Marex Group plc (Nasdaq: MRX) (“Marex”), the diversified global financial services platform, announced the pricing on May 1, 2025 of a public offering (the “Offering”) of U.S.$500 million aggregate principal amount of its 5.829% Senior Notes due 2028 (the “Notes”). The Notes will be issued at a price to the public equal to 100.000% of the principal amount thereof and will be senior unsecured obligations of Marex.

The Offering is expected to close on or about May 8, 2025, subject to the satisfaction of customary closing conditions. Marex intends to use the net proceeds from the Offering for working capital, to fund incremental growth and for other general corporate purposes.

Ian Lowitt, CEO of Marex, commented:

“This successful debt issuance further diversifies our sources of funding and enables the continued expansion of our business, bolstering our liquidity so we can support our clients. We are pleased to have seen very strong investor interest for these notes, demonstrating continued confidence in our client-driven business model, prudent approach to capital and our liquidity profile.”

Barclays, Goldman Sachs & Co. LLC and Jefferies are acting as joint book-runners for the Offering.

The Offering is being made pursuant to Marex’s existing effective shelf registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission (the “SEC”). The Offering will be made only by means of a preliminary prospectus supplement and its accompanying base prospectus. You may obtain copies of these documents for free by visiting the SEC’s website at www.sec.gov or by calling Barclays Capital Inc. toll-free at (888) 603-5847, Goldman Sachs & Co. LLC toll-free at (866) 471-2526 or Jefferies LLC toll-free at (877) 877-0696.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward looking statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including the expected closing date of the Offering. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation: subdued commodity market activity or pricing levels; the effects of geopolitical events, terrorism and wars, such as the effect of Russia’s military action in Ukraine or the on-going conflicts in the Middle East, on market volatility, global macroeconomic conditions and commodity prices; changes in interest rate levels; the risk of our clients and their related financial institutions defaulting on their obligations to us; regulatory, reputational and financial risks as a result of our international operations; software or systems failure, loss or disruption of data or data security failures; an inability to adequately hedge our positions and limitations on our ability to modify contracts and the contractual protections that may be available to us in OTC derivatives transactions; market volatility, reputational risk and regulatory uncertainty related to commodity markets, equities, fixed income, foreign exchange; the impact of climate change and the transition to a lower carbon economy on supply chains and the size of the market for certain of our energy products; the impact of changes in judgments, estimates and assumptions made by management in the application of our accounting policies on our reported financial condition and results of operations; lack of sufficient financial liquidity; if we fail to comply with applicable law and regulation, we may be subject to enforcement or other action, forced to cease providing certain services or obliged to change the scope or nature of our operations; significant costs, including adverse impacts on our business, financial condition and results of operations, and expenses associated with compliance with relevant regulations; and if we fail to remediate the material weaknesses we identified in our internal control over financial reporting or prevent the occurrence of material weaknesses in the future, the accuracy and timing of our financial statements may be impacted, which could result in material misstatements in our financial statements or failure to meet our reporting obligations and subject us to potential delisting, regulatory investments or civil or criminal sanctions, and other risks discussed under the caption “Risk Factors” in our preliminary prospectus supplement for the Offering and its accompanying base prospectus filed with the SEC, and our other reports filed with the SEC.

The forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Enquiries please contact:

Marex:
Nicola Ratchford / Adam Strachan
+44 778 654 8889 / +1 914 200 2508 | nratchford@marex.com/ astrachan@marex.com

FTI Consulting US / UK
+1 (919) 609-9423 / +44 (0) 7776 111 222 | marex@fticonsulting.com

FAQ

What is the size and interest rate of Marex Group's (MRX) new senior notes offering?

Marex Group's senior notes offering is for U.S.$500 million with a 5.829% interest rate, due in 2028.

When will Marex Group's (MRX) senior notes offering close?

The senior notes offering is expected to close on or about May 8, 2025, subject to customary closing conditions.

How will Marex Group (MRX) use the proceeds from the senior notes offering?

Marex plans to use the net proceeds for working capital, funding incremental growth, and other general corporate purposes.

Who are the joint book-runners for Marex Group's (MRX) senior notes offering?

Barclays, Goldman Sachs & Co. LLC, and Jefferies are acting as joint book-runners for the offering.

What type of obligations are Marex Group's (MRX) new senior notes?

The notes will be senior unsecured obligations of Marex Group, priced at 100.000% of the principal amount.