Leucadia To Provide FXCM With $300 Mln Financing

(RTTNews) - Leucadia National Corp. (LUK) said Friday that it would be providing $300 million in cash to currency broker FXCM Inc. (FXCM) and its subsidiaries that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after yesterday's loss of $225 million due to the unprecedented actions of the Swiss National Bank.

Under the terms of the agreements, Leucadia is investing $300 million in cash into FXCM in the form of a $300 million senior secured term loan with a two-year maturity and an initial coupon of 10%. The term loan obligations are guaranteed, on a secured basis, by certain of FXCM's domestic subsidiaries.

In addition, Leucadia will receive, in the event of a sale of FXCM or its subsidiaries, a certain percentage of the sale proceeds and, in the event FXCM makes other distributions on account of its equity, a corresponding payment for its own account.

The transaction is expected to close this afternoon.

FXCM shares closed Friday's regular trading session at $$6.97, down $5.66 or 44.81%.