Leucadia and FXCM sign MoU to deepen and extend partnership
Leucadia and FXCM sign MoU explained by professional Forex trading experts the “Leucadia and FXCM sign MoU” FX trading team.
Leucadia and FXCM sign MoU
Leucadia National Corporation (NYSE:LUK) and FXCM Inc. (NYSE:FXCM) today announced that they have entered into a memorandum of understanding to amend the terms of their Amended and Restated Credit Agreement and their Amended and Restated Letter Agreement, each dated January 24, 2015. The nonbinding MOU remains subject to the execution of definitive agreements and Board and regulatory approvals. Leucadia and FXCM expect to complete the amendment by June 2016.
Principal Changes to the Credit Agreement:
The Credit Agreement would be extended by one year to January 2018 to allow FXCM more time to optimize remaining asset sales. While FXCM is actively marketing the non-core assets it has identified to be sold, Leucadia and FXCM concluded that greater value could be realized for all stakeholders through additional time to complete the asset sales.
FXCM would have the right to defer any three of the remaining interest payments by paying interest in kind. Payments in kind will permit FXCM to honor its debt obligations, while maintaining maximum flexibility to invest and grow its core business.
Until the loan and interest under the Credit Agreement are fully repaid, all distributions and sales proceeds shall continue to be used solely to repay the loan plus interest.
Principal Changes to the Letter Agreement:
The Letter Agreement would be terminated and its terms shifted to Newco’s LLC agreement.
The existing FXCM Newco, LLC (“Newco”) agreement would be amended, Newco would be renamed FXCM Group LLC (“FXCM Group”), and Leucadia would own a 49.9% common membership interest in FXCM Group. FXCM Holdings LLC would own a 50.1% common membership interest in FXCM Group.
FXCM Group would be governed by an eight-member board, comprising three directors appointed by Leucadia, contemplated to be Rich Handler, Brian Friedman and Jimmy Hallac, three directors appointed by FXCM, and two independent directors, one each to be nominated by Leucadia and FXCM.
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