FXCM takes $75 million credit facility
- FXCM just took a revolving credit facility - much similar to Gain who took $50 million back in October. It's interesting why FXCM is doing that as it according to its Q3 2011 report it has over $177 million in cash and cash equivalents. This may be because FXCM is rolling its existing debt (if it has any), planning a big acquisition or more likely - realized that it is can arbitrage the value of its stock (interest, dividends, etc) and the cost of this credit facility.
FXCM just took a revolving credit facility - much similar to Gain who took $50 million back in October. It's interesting why FXCM is doing that as it according to its Q3 2011 report it has over $177 million in cash and cash equivalents. This may be because FXCM is rolling its existing debt (if it has any), planning a big acquisition or more likely - realized that it is can arbitrage the value of its stock (interest, dividends, etc) and the cost of this credit facility. FXCM's owners are buying plenty of shares lately with FXCM's stock trading 30% below its IPO price. Eduard Yusupov for instance bought almost a $1 million worth of shares in the past month. If this keeps going FXCM may soon be able to delist itself after racking up nice profits.
NEW YORK, December 20, 2011 FXCM Inc. (NYSE: FXCM), a leading online provider of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, or FX, trading and related services, today announced that FXCM Holdings LLC has entered into a three year revolving credit facility with Bank of America, N.A., as Administrative Agent and several lenders from time to time parties thereto. The credit agreement provides for a $75 million revolving credit facility that may be increased during its three year term by up to $75 million for a total of up to $150 million.
“We are pleased to announce the credit facility which will provide us the increased Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and financial flexibility that will allow us to continue to grow our business both organically and through acquisitions.” said Drew Niv, Chief Executive of FXCM.
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FXCM just took a revolving credit facility - much similar to Gain who took $50 million back in October. It's interesting why FXCM is doing that as it according to its Q3 2011 report it has over $177 million in cash and cash equivalents. This may be because FXCM is rolling its existing debt (if it has any), planning a big acquisition or more likely - realized that it is can arbitrage the value of its stock (interest, dividends, etc) and the cost of this credit facility. FXCM's owners are buying plenty of shares lately with FXCM's stock trading 30% below its IPO price. Eduard Yusupov for instance bought almost a $1 million worth of shares in the past month. If this keeps going FXCM may soon be able to delist itself after racking up nice profits.
NEW YORK, December 20, 2011 FXCM Inc. (NYSE: FXCM), a leading online provider of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, or FX, trading and related services, today announced that FXCM Holdings LLC has entered into a three year revolving credit facility with Bank of America, N.A., as Administrative Agent and several lenders from time to time parties thereto. The credit agreement provides for a $75 million revolving credit facility that may be increased during its three year term by up to $75 million for a total of up to $150 million.
“We are pleased to announce the credit facility which will provide us the increased Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and financial flexibility that will allow us to continue to grow our business both organically and through acquisitions.” said Drew Niv, Chief Executive of FXCM.