FXCM repays $7.7 million to Leucadia in Q1 2016

Leucadia National Corp. (NYSE:LUK), which extended a $300 million loan to FXCM Inc (NYSE:FXCM) in January 2015, following the “Black Thursday” events associated with the Swiss franc spike, has posted its report for the first quarter of 2016, with the document providing an update on the status of the loan repayment and Leucadia’s investment in the US Forex broker.

During the three months ended March 31, 2016, Leucadia received $7.7 million of principal, interest and fees from FXCM and $192.7 million remained outstanding under the credit agreement as of March 31, 2016. As per Leucadia’s previous report – the one for the year to December 31, 2015, the same amount was outstanding at the end of 2015. Through the first quarter of 2016 interest accrued at 16.0% per annum; in the second quarter of 2016 interest will accrue at 17.5% per annum.

Leucadia reported a $53.2 million reduction to the fair value of its FXCM investment (reducing its cumulative gains from its FXCM investment to $438 million).

In March this year, Leucadia and FXCM entered into a nonbinding memorandum of understanding amending the terms of the FXCM loan and associated rights. Among other changes, the proposed amendments would extend the maturity of the term loan by one year to January 2018 to provide FXCM with more time to optimize remaining asset sales; give Leucadia a 49.9% common membership interest in FXCM Newco, LLC as well as non-voting preferred shares; create an eight-member board for FXCM Newco, comprised of three directors appointed by Leucadia, three directors appointed by FXCM, and two independent directors; and put in place a long-term incentive program for FXCM senior management.


For the full SEC filing from Leucadia, click here.

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