Leucadia National Corp. has published its report about a loan repayment from the FXCM by December 31, 2015. The broker has taken a $300 million loan from Leucadia, following the “Black Thursday” disaster, related to the significant Swiss franc jump.
This report is a detailed description of the loan repayment status by the above-mentioned date. The market was interested in this report mostly because of the possibility of change of terms and conditions of the credit agreement between FXCM and Leucadia, what was already indicated in an announcement from December 2015. The broker was also forced to push the target deadline for the repayment of its debt to Leucadia from the first half of this year to H2 2016.
Report
According to the report, Leucadia received $144.7 million by the end of December 31, 2015, of principal, interest and fees from FXCM, while $192.7 million remained outstanding under the credit agreement as of December 31, 2015.
A restructuring of the variable portion of distribution have been discussed between Leucadia and FXCM, albeit there is not certainty that any deal will be reached between them.
Leucadia has recognized $491.3 million of unrealized and realized gains from its FXCM investment, including the component related to interest income, which is recorded within Leucadia’s Principal transactions revenues, during the previous year.
The total amount of Leucadia’s investment in FXCM at December 31, 2015 reached $625.7 million, while maximum exposure to loss (by Leucadia) as a result of its involvement with the broker is limited to the carrying value of its investment (the $625.7 million figure just mentioned).
In January 2015, FXCM entered into a credit agreement with Leucadia, and provided FXCM a two-year senior secured term loan with rights to a variable proportion of certain future distributions.
The total amount of Leucadia investment at December 31, 2015 is $625.7 million and Leucadia report it within Trading assets, at fair value in its Consolidated Statement of Financial Condition.
For any questions or recommendations, feel free to write us on hello@goforex.eu
