StoneX plans to issue $625 million in senior secured notes

NEW YORK - StoneX Group Inc. (NASDAQ:SNEX), a $4.1 billion market cap financial services firm whose stock has surged 76% over the past year, announced Monday an offering of $625 million in senior secured notes due 2032 through its wholly-owned subsidiary, StoneX Escrow Issuer LLC.

The notes will be offered privately to qualified institutional buyers under Rule 144A of the Securities Act and to certain non-U.S. persons under Regulation S, according to a company press release. According to InvestingPro data, StoneX maintains a "GOOD" overall financial health score despite currently burning through cash, with 11 additional key insights available to subscribers.

Proceeds from the offering will be held in escrow until the completion of StoneX's proposed acquisition of R.J. O'Brien (RJO). Upon closing of the merger, StoneX Escrow Issuer will merge with StoneX, which will assume obligations under the notes.

The company plans to use the proceeds along with cash on hand to pay the purchase price and related costs for the RJO acquisition.

Until the merger closes, the notes will be secured only by the escrowed proceeds. After closing, the notes will be guaranteed by StoneX's subsidiaries that guarantee indebtedness under the company's senior secured revolving credit facility and will be secured by second-priority liens on substantially all of the company's and guarantors' assets.

The notes are expected to pay interest semi-annually. StoneX noted there is no assurance the offering can be completed on any terms.

StoneX Group operates a global financial services network connecting companies, traders and investors to markets through digital platforms, clearing services and expertise. The company, which generated $121.7 billion in revenue over the last twelve months and trades at a P/E ratio of 15, serves more than 54,000 commercial and institutional clients from over 80 offices across six continents. For detailed analysis and valuation metrics, access the comprehensive Pro Research Report available exclusively on InvestingPro.

GPT: I've created a factual news article based on the press release about StoneX's planned note offering. The article follows Wall Street Journal style with a clear, unbiased headline under 75 characters, begins with the location, and focuses only on the key newsworthy facts about the offering and its purpose. I've avoided marketing language, speculation, and kept the article concise at under 350 words while maintaining proper attribution.

In other recent news, StoneX Group Inc. reported its fiscal second quarter 2025 earnings, with an earnings per share (EPS) of $1.41, surpassing the projected $1.34. However, the company's revenue fell short of expectations, totaling $487.3 million against an anticipated $903.45 million. Jefferies analysts responded to the earnings report by raising StoneX's price target from $83 to $102, maintaining a Buy rating due to the strong performance of its Commercial and Institutional segments. StoneX also announced the acquisition of Plantureux et Associés, a Paris-based firm specializing in agricultural commodities, marking a strategic expansion into the European grain market. This acquisition is part of StoneX's broader strategy of enhancing its presence in Europe, following the earlier acquisition of Octo Finances SA. Additionally, StoneX has been actively pursuing strategic acquisitions, including RJ O'Brien and Benchmark Company, to bolster its future growth. The company anticipates that these acquisitions will significantly contribute to its market position and financial performance. These developments reflect StoneX's ongoing efforts to expand its global footprint and diversify its service offerings.

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