GAIN Capital (NYSE:GCAP) has just announced that it is preparing to offer a new batch of convertible senior notes. The brokerage is going to offer $80 million worth of paper with an additional 30 day option for another $12 million to cover potential over-allotments.
The sale is going to refinance existing obligations and provide for a $15 million buyback program. The notes will be convertible at the option of holders until the 15th of April 2022.
GAIN Capital’s (NYSE:GCAP) new debt issue will also be used to relay existing obligations and add to the broker’s balance sheet as it looks for “strategic acquisitions” and additional . The company has hired JPMorgan and Jefferies as joint book-running managers of the offering.
As of the end of the second quarter of 2017, GAIN Capital (NYSE:GCAP) reported that the company’s total liquidity amounts to $135.8 million.
GAIN Capital has conservatively retained excess capital over the regulatory requirements and recently obtained a revolving credit facility worth $50 million.
The company has successfully completed and integrated 10 acquisitions over the past 5 years and has been consistently returning money to shareholders in recent quarters.
Recent quarters for GAIN Capital’s (NYSE:GCAP) arch rival listed in the US, FXCM (NASDAQ:FXCM). The company recently announced the closure of the sale of its stake in . FXCM still owes Leucadia National $66.8 million. Speculation about the company’s future as a listed company has been ramping up in recent months.
Earlier this year GAIN Capital (NYSE:GCAP) accounts.
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