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.
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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. 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 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.