FXCM files shelf prospectus indicating plans for $125 million capital raise

Forex broker FXCM Inc (NYSE:FXCM) has filed a shelf prospectus with the U.S. Securities and Exchange Commission (SEC), indicating that the company is planning to raise in the neighborhood of $125 million in the near future.

According to the prospectus, the capital raise could be in the form of equity, debt, or some combination thereof.

A shelf prospectus filing doesn’t commit FXCM to a capital raise, nor to any specific timing for a capital raise. However, companies don’t usually make such filings unless they have a specific plan in mind to raise money, and targeted (near-term) timing. They are often filed after the company engages investment bankers in discussions to evaluate the potential for an offering of some sort.

Why file a shelf prospectus?

A shelf prospectus filing allows an issuer like FXCM to clear all their paperwork for an offering in advance with regulatory authorities. That allows the issuer (FXCM in this case) to move forward very quickly with an offering when market conditions are right, without the worry of filing and clearing a new prospectus.

Not surprisingly, FXCM put down as the first planned use of proceeds from any money raised to be targeted to ‘reduce or refinance outstanding debt‘, and to ‘redeem or repurchase certain outstanding securities‘. We would imagine that the first order of business would be to pay down FXCM’s loan from Leucadia National Corp (NYSE:LUK), on which FXCM is paying a punitively high rate of interest. And which, in our view, is the main thing keeping FXCM’s shares depressed.

The FXCM shelf prospectus filing can be seen on the SEC website here.

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  • SaraP

    Fxcm and Fxpro are big time BANKRUPT and simply refuse to declare insolvency.

    Waste of time and effort.

    • Truthman

      you seem to have something against Fxpro. After tons of articles here and on other Forex websites you somehow try to sneak in something about Fxpro, always under a different name. Whatsamatter, they fire your ass?

  • JaneK

    you have quite misleading title, LeapRate

    • LeapRate Staff

      What exactly is misleading? They clearly have plans to raise $125M or so, or they would not have done this.

      • JaneK

        the title states they plan a capital raise of $125m

        • LeapRate Staff

          Yes, that’s right, they plan a capital raise of $125M. That’s why they filed the prospectus. So how again is our title misleading? Quite the opposite, our title explains what the otherwise obscure filing is all about. That’s what we’re here to do…..

  • Adi

    Why I am not seeing this report at FXCM.ir.com?

    • LeapRate Staff

      Adi – First of all, the FXCM investor relations website is at ir.fxcm.com. And secondly, their SEC filings including this filing are there, at http://ir.fxcm.com/sec.cfm


FXCM files shelf prospectus indicating plans for $125 million capital raise


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