Marex Group plc Announces Pricing of U.S.$600 Million Senior Notes Offering

Rhea-AI Summary

Marex Group plc (Nasdaq: MRX) has announced the pricing of a U.S.$600 million Senior Notes offering with a 6.404% interest rate, due 2029. The Notes will be issued at 100% of principal value and will be senior unsecured obligations. The offering is expected to close around November 4, 2024. The company plans to use the proceeds for working capital, incremental growth funding, and general corporate purposes. The offering received strong investor interest, reflecting market confidence in Marex's prudent capital profile and business model.

Positive

• Successfully priced $600 million senior notes offering
• Strong investor interest indicating market confidence
• Additional liquidity for business growth and working capital
• Diversification of funding sources

Negative

• Taking on significant debt with 6.404% interest rate
• Increased financial obligations and interest expense burden

Insights

Financial Analyst

This $600 million senior notes offering at 6.404% interest rate marks a significant debt financing move for Marex. The pricing and strong investor interest indicate market confidence in Marex's business model and financial stability. The 5-year maturity (2029) and unsecured nature of the notes suggest favorable terms, though the interest rate reflects current market conditions.

The strategic focus on clearing services expansion and working capital enhancement positions Marex for growth in their core business. With a market cap of $1.87 billion, this debt raise represents a substantial financing that could significantly impact their operational capabilities. The successful placement through major underwriters (Barclays, Goldman Sachs, Jefferies) adds credibility to the offering.

Market Research Analyst

The successful debt placement demonstrates strong institutional investor confidence in Marex's market position and growth strategy. Key positive indicators include:

• Full price placement at $600 million with no discount
• Support from top-tier investment banks
• Focus on clearing services expansion, a high-growth segment

The timing aligns with market demand for financial infrastructure services, particularly in clearing. This funding provides Marex significant firepower for strategic growth initiatives while maintaining operational flexibility through its unsecured nature.

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Marex Group plc (Nasdaq: MRX) (“Marex”), the diversified global financial services platform, announced the pricing on October 30, 2024 of a public offering (the “Offering”) of U.S.$600 million aggregate principal amount of its 6.404% Senior Notes due 2029 (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 November 4, 2024, 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:

“We are very pleased to announce this successful debt issuance which will further diversify our sources of funding. This liquidity will be used to support further growth of our franchise and our growing client base, particularly in clearing. The very strong investor interest for these notes reflects the market’s recognition of our prudent capital and liquidity profile, client-driven business model and our competitive position.”

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

The Offering is being made pursuant to Marex’s existing effective shelf registration statement 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, 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 and cryptocurrency; 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 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.

FAQ

What is the size and interest rate of Marex Group's (MRX) 2024 senior notes offering?

Marex Group's (MRX) senior notes offering is U.S.$600 million with a 6.404% interest rate, due 2029.

When will Marex Group's (MRX) 2024 senior notes offering close?

The senior notes offering is expected to close on or about November 4, 2024, subject to customary closing conditions.

How will Marex Group (MRX) use the proceeds from its 2024 senior notes offering?

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