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, 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 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.