vendredi 16 janvier 2015
Leucadia to provide $300M in financing to FXCM
Posted on 13:07 by nice news
Retail foreign exchange broker FXCM got a $300 million bailout on Friday after taking huge losses on the Swiss National Bank's (SNB) shock decision to drop its three-year-old peg of 1.20 Swiss francs per euro.
Leucadia National invested $300 million cash in FXCM in exchange for $250 million in two-year senior secured notes with a 10% coupon. If FXCM is sold, Leucadia will get 75 percent of the proceeds.
Those terms suggest that, at the most basic level, FXCM would have to be sold for $400 million for Leucadia to break even. At Thursday's close the business was worth $600 million.
"Leucadia's support and this financing are by far the best alternative for FXCM, our customers, our shareholders, and all other relevant constituencies," FXCM CEO Drew Niv said in a statement.
FXCM warned Thursday evening that clients owed it $225 million and that it may be in breach of some capital requirements. The stock
Leucadia National invested $300 million cash in FXCM in exchange for $250 million in two-year senior secured notes with a 10% coupon. If FXCM is sold, Leucadia will get 75 percent of the proceeds.
Those terms suggest that, at the most basic level, FXCM would have to be sold for $400 million for Leucadia to break even. At Thursday's close the business was worth $600 million.
"Leucadia's support and this financing are by far the best alternative for FXCM, our customers, our shareholders, and all other relevant constituencies," FXCM CEO Drew Niv said in a statement.
FXCM warned Thursday evening that clients owed it $225 million and that it may be in breach of some capital requirements. The stock
Leucadia to provide $300M in financing to FXCM
Categories: Leucadia to provide $300M in financing to FXCM
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