Bulletin: Jump Financial LLC's Announced Term Loan Upsizing Remains Consistent With Ratings Expectations

TORONTO (S&P Global Ratings) May 19, 2025--S&P Global Ratings today said that Jump Financial LLC's (BB-/Stable/--) announced upsizing of its first-lien term loan B by $250 million will not materially erode the firm's capitalization. The company has added about $500 million total of long-term debt this year, including today's upsize, and we view this transaction as supportive of funding. Jump's risk-adjusted capital ratio declined modestly to approximately 14% as of March 31, 2025, compared with about 14.8% as of year-end 2024. This is because of an increase in market risk weighted assets, as the company capitalized on trading opportunities in a volatile market. Even accounting for expected growth in trading operations and exposures, we assume the risk-adjusted capital (RAC) ratio

...May 19, 2025 TORONTO (S&P Global Ratings) May 19, 2025--S&P Global Ratings today said that Jump Financial LLC's (##-/Stable/--) announced upsizing of its first-lien term loan B by $250 million will not materially erode the firm's capitalization. The company has added about $500 million total of long-term debt this year, including today's upsize, and we view this transaction as supportive of funding. Jump's risk-adjusted capital ratio declined modestly to approximately 14% as of March 31, 2025, compared with about 14.8% as of year-end 2024. This is because of an increase in market risk weighted assets, as the company capitalized on trading opportunities in a volatile market. Even accounting for expected growth in trading operations and exposures, we assume the risk-adjusted capital (RAC) ratio will remain above 12%, aided by strong earnings retention, comfortably above the 10% threshold for the current ratings. After a record income in 2024, Jump had good earnings in the first quarter of...

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