GAIN Capital Prices $80m Notes at 5%

Following yesterday's announcement about an incoming debt sale, GAIN Capital announced that it has priced the issue. The $80 million worth of senior convertible notes have been priced at a fixed rate of 5 percent. GAIN Capital also provided a 30 day option to add $12 million to the issue to cover any over-allotments.

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The brokerage expects net proceeds from the sale to amount to $77.4 million, or $89 million should the over-allotment option be exercised. The debt offering is expected to close on the 22nd of August.

GAIN Capital has already committed to repurchasing its own shares with about $14.5 million of the proceeds from the sale. The company will execute the transactions in private negotiations through J.P. Morgan after the closing of the offering. GAIN Capital may also use existing credit agreements or other cash on hand or any combination thereof.

The purchase price per share of GAIN Capital common stock repurchased by GAIN Capital equals the closing price per share of its common stock on August 16, 2017, which was $6.83 per share.

As already stated yesterday, GAIN Capital will use the proceeds from the sale to repay existing Obligations and for “strategic acquisitions”.