FXCM Inc. Announces Proposed Private Offering of $125 Million of Convertible Senior Notes

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker FXCM has announced that it intends to offer $125 million in convertible senior notes due in 2018. FXCM stated that they will be using a portion of the proceeds to repay approximately $80 million of the firm’s revolving credit facility. They added that they “intend to use the remaining net proceeds from the offering for general corporate purposes, including potential future acquisitions.”

FXCM has been pretty vocal in its conference calls and media correspondence that it is putting an emphasis on shareholder creation. Proposed plans include accretive acquisitions, share buybacks, and cost reductions. The current convertible debt offering follows that trend, as FXCM is counting on the ability to tap ‘cheap’ money to help boost their financial fundamentals; thereby leading to an increased stock price. During the Forex Magnates M&A Panel in London last year, FXCM CEP Drew Niv mentioned that despite the hardships of being a public company, it has provided them better opportunities for tapping the credit and debt markets, as well as allowing them to source better terms with their counterparties.