FXCM debt to Leucadia unchanged in Q2 at $122M, FastMatch sale proceeds pending

FXCM Leucadia loan

Investment giant Leucadia National Corp. (NYSE:LUK) has issued its second quarter results report, giving a little more insight into the money still owed to it by the FXCM unit of Global Brokerage Inc (NASDAQ:GLBR).

According to Leucadia, they have nearly recovered the full amount of cash they invested in FXCM in January 2015, and still have $122.1 million of principal balance outstanding on the loan as of June 30, 2017. The FXCM loan balance was $123 million at the end of Q1.

The loan pays out interest of 20.5% annually (payable quarterly), the maximum allowed under the credit agreement. Meaning, that each quarter FXCM is paying out interest of about $6.3 million to Leucadia.

The loan balance, however, is expected to shrink during Q3 once the sale of FastMatch to Euronext closes. In May Euronext agreed to buy forex ECN FastMatch for $153 million, with the deal slated to close during Q3. FXCM’s take from that sale is expected to be about $55.6 million, with a portion held in escrow and subject to certain future adjustments including a share of a $10 million earn-out if certain performance targets of FastMatch are met.

FXCM’s entire portion of the FastMatch sale proceeds will be used to pay down the Leucadia loan.

Read Also: