First Derivatives agrees extended bank facilities totalling £130m to support growth plans

Maria Nikolova

The facilities will refinance the Group’s existing borrowings and will be partly used to finance the acquisition of the minority shareholding in Kx Systems.

First Derivatives plc (LON:FDP) has earlier today announced that it has agreed extended bank facilities totalling £130 million to support its growth plans. The facilities comprise a term loan of £65 million and a revolving loan facility of £65 million.

The five-year facilities will refinance the Group’s existing borrowings and will be partly used to finance the acquisition of the minority shareholding in Kx Systems, due to be made on June 29, 2019.

The term loan and the revolving loan facility will have an interest rate for the first 12 months of LIBOR plus 2.75%. After this, an interest rate ratchet will apply from LIBOR plus 2.00% to LIBOR plus 3.00% depending on the level of debt relative to EBITDA. This represents an improvement on current terms where the interest rate payable varies from LIBOR plus 2.25% to LIBOR plus 3.50%.

The lead arranger for the bank facilities is Bank of Ireland with participation from Barclays, First Trust Bank and Silicon Valley Bank.

In July 2018, First Derivatives announced an agreement to acquire the minority shareholdings in Kx Systems, taking 100% ownership by end June 2019. Under the terms of the deal, First Derivatives has agreed to acquire the remaining 600,022 Kx Systems shares that it does not already own from the minority shareholders, namely Arthur Whitney and Janet Lustgarten, who are co-founders and current directors of Kx Systems, and their associated persons. The aggregate consideration is $53.8 million in cash, to be financed from FD’s available facilities.

As per the latest First Derivatives’ financial results – those for the six months to end-August 2018, the Group marked strong growth in software revenue, up 21%, with license revenue up 39% driven by increased demand for Kx technology across the Group’s client base. FinTech revenue rose 24% to £82.7 million (H1 2018: £66.8m), driven by growth in software revenue and an expansion of services provided to clients. MarTech revenue was up 8% to £19.8 million (H1 2018: £18.3m), driven by 42% growth in subscriptions for First Derivatives’ Marketing Cloud platform, powered by Kx.

Read this next

Executive Moves

Genesis Global snatches CMO Jason Jhonson from metaverse company

The hire of Jhonson follows the announcement that Genesis raised $20 million in fresh funding from US banking giants, Bank of America, BNY Mellon and Citi.

Digital Assets

Celsius subsidiary GK8 integrates with Polygon while looking for new owner

“This integration affords our customers more agility in managing their crypto assets, which is key to creating new revenue streams.”

Digital Assets

BDO Italia audits Tether reserves to release monthly attestation

World’s largest stablecoin issuer, Tether has switched the accounting firm that audits the massive reserves that back its USDT token to BDO Italia, the 5th largest accounting firm in the world.

Retail FX

Libertex bags multi-year sponsorship deal with FC Bayern

Indication Investments Ltd, the operator of FX retail brand Libertex, has secured a lucrative sponsorship deal with German soccer giant FC Bayern.

Institutional FX

PrimeXM reports lower volumes for July as summer lull bites

PrimeXM has reported weaker trading volumes for July 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Retail FX

FCA warns of ATFX Global Trading / ATFXcoin

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

Digital Assets

CME Group to roll out options on Ether futures next month

Derivatives exchange CME Group is set to roll out options on Ether futures on September 12 in a move to bring another level of diversification to cryptocurrency traders.

Industry News, Podcasts

Finance Feeds launches Podcasts: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and other audio services and hosted by our Editor-in-Chief Nikolai Isayev.

Digital Assets

Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

<