Waddell & Reed Financial Inc. entered on Oct. 20 into a credit agreement for a $100 million unsecured revolving credit facility, in which lending commitments may be increased, at the company's request, to up to $200 million.

Commitments under the facility are for a 364-day term and are scheduled to expire Oct. 19, 2021. Upon expiration, the company must repay all obligations outstanding under the agreement.

The agreement is available for general corporate purposes, including repurchases of the company's common stock and consummating permitted acquisitions. As of the date of the company's 8-K filing, there were no loans outstanding under the agreement.

Borrowings under the facility will bear interest at floating rates based upon London interbank offered rate for the applicable interest period for Eurodollar-indexed loans; or for non-Eurodollar-indexed loans, an alternate base rate, in each case, plus an applicable margin determined by reference to the company's debt rating as of any given date.

The agreement contains customary covenants, including certain restrictions on the company and its subsidiaries.

Immediately prior to the company entering into this credit agreement, the company terminated its existing unsecured $100 million revolving credit facility entered on Oct. 20, 2017, which was scheduled to expire Oct. 20, 2020. As of the date of its termination, there were no loans outstanding under the agreement.