KCG Announces $100 Million Credit Facility Repayment
- Also according to today's announcement, a credit facility of $535 Million was needed to finance the merger of GETCO and Knight Capital into KCG Holdings back in July, $300 Million of which is already repaid
NYSE listed broker KCG Holdings Inc., announced today the completion of a $100 million debt principal repayment under the company's first lien senior secured credit facility.
According to the firm's announcement, since entering into the $535 million credit facility on July 1, 2013, needed to finance the merger of GETCO and Knight Capital, KCG has completed a total of $300 million in principal repayments on the loan, leaving a remaining outstanding balance of $235 million.
Steve Bisgay, Chief Financial Officer of KCG, commented in the announcement: "We're grateful for the ability to continue paying down the debt incurred to finance the creation of KCG ahead of schedule. Under the integration plan, efforts to streamline KCG and refocus on core market making and trading services have the added benefit of generating additional 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. We intend to utilize this cash in part to further reduce the company's interest expense until we attain the target capital structure for the firm."
Under the terms of the credit facility, an amortization payment of $235 million is due on July 1, 2014, followed by amortization Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of $7.5 million each quarter beginning September 30, 2014 until maturity on December 5, 2017. Prepayments however, are permitted at any time without premium or penalty except in connection with certain refinancings.
The $100 million was sourced from the proceeds of the sale of a subsidiary, Urban Financial of America, LLC, which took place on November 30th, 2013, and the subsequent release of excess liquidity maintained for the Urban business.
NYSE listed broker KCG Holdings Inc., announced today the completion of a $100 million debt principal repayment under the company's first lien senior secured credit facility.
According to the firm's announcement, since entering into the $535 million credit facility on July 1, 2013, needed to finance the merger of GETCO and Knight Capital, KCG has completed a total of $300 million in principal repayments on the loan, leaving a remaining outstanding balance of $235 million.
Steve Bisgay, Chief Financial Officer of KCG, commented in the announcement: "We're grateful for the ability to continue paying down the debt incurred to finance the creation of KCG ahead of schedule. Under the integration plan, efforts to streamline KCG and refocus on core market making and trading services have the added benefit of generating additional 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. We intend to utilize this cash in part to further reduce the company's interest expense until we attain the target capital structure for the firm."
Under the terms of the credit facility, an amortization payment of $235 million is due on July 1, 2014, followed by amortization Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of $7.5 million each quarter beginning September 30, 2014 until maturity on December 5, 2017. Prepayments however, are permitted at any time without premium or penalty except in connection with certain refinancings.
The $100 million was sourced from the proceeds of the sale of a subsidiary, Urban Financial of America, LLC, which took place on November 30th, 2013, and the subsequent release of excess liquidity maintained for the Urban business.