Gain Capital convertible note offering raised to $80 million

Underwriters led by Jefferies exercise ‘greenshoe’ option

Retail forex broker GAIN Capital (NYSE:GCAP) has reported yesterday that it after the increase of its convertible note offering last week, the initial purchasers have exercised their option to purchase additional $10 million of notes. With. Is action the total amount of notes sold aggregates $80 million, whilst  the net proceeds for the company will total about $77.2 million.

As we have already mentioned in a separate piece this is putting an overhang on the share prices of GAIN Capital as investors buying the convertibles are typically hedging their exposure by shorting the stock. After an initial drop in share prices just below $8.50 new buyers have propped it up from the lows and currently GAIN Capital (NYSE:GCAP) is trading around $9.32.

The sale of the notes is closing today.  We will be monitoring closely share price developments surrounding the events in the coming days so stay tuned to LeapRate for more details related to the publicly listed companies in the forex industry.

For a link to the full press release visit GAIN Capital’s investor relations website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

Read Also: