AssetMark Closes $250 Million Revolving Credit Facility, Retires Existing Term Loan
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 $250 million secured revolving Credit Facility.
Concurrently, AssetMark will draw down $75 million on the new Credit Facility and use those funds plus cash to retire its $124 million existing term loan, which had a rate of LIBOR plus 3.00%.
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 2.00%.
“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 $67 billion in platform assets as of September 30, 2020. For more information visit assetmark.com.
SOURCE: AssetMark Financial Holdings, Inc.
Taylor J. Hamilton, CFA
Head of Investor Relations