FXCM Inc Announces Repayment of Additional $54 mln of Leucadia Loan

According to a corporate announcement, FXCM Inc (NYSE:FXCM) has paid back an additional $54 million of its loan to Leucadia. The repayment means that the brokerage will avoid a contingent financing fee of $30 million.

The payment was partially funded with proceeds from the sale of FXCM Japan to Rakuten Inc. FXCM has now repaid $66 million under the credit agreement, and as of April 1, 2015, FXCM’s outstanding Leucadia loan balance is $244 million.

In accordance with its agreement with Leucadia, FXCM Inc (NYSE:FXCM) had to repay over $60 million by April 16th in order to avoid an additional contingent financing fee totaling $30 million. The trigger for this penalty fee was an outstanding balance of more than $250 million by April 16th.

The results of the FXCM Japan sale exceeded our expectations

In accordance with the terms of the loan agreement between FXCM Inc (NYSE:FXCM) and Leucadia. FXCM shareholders are now certain to benefit from an improved sharing determination of proceeds from future asset sales, dividends and distributions.

The company’s CEO Drew Niv commented in the announcement, “We are ahead of plan and The results of the FXCM Japan sale exceeded our expectations. With all the increased attention to our other properties, we are expecting robust and competitive auctions for the other non-core assets we have targeted to sell.”

FXCM is expecting to make an additional repayment totaling about $12 million in the coming weeks. According to the terms of the agreement with Leucadia, the loan has an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter for so long as it is outstanding, but in no event exceeding 20.5% per annum.