GAIN Capital informs Barclays of termination of $50m credit agreement
The brokerage is set to terminate the facility effective as of January 13, 2020.
Online trading major Gain Capital Holdings Inc (NYSE:GCAP) is terminating a credit agreement with Barclays, as per a filing with the Securities and Exchange Commission (SEC) dated January 8, 2020.
On January 2, 2020, GAIN Capital delivered written notice to Barclays Bank PLC to terminate a Credit Agreement from August 2, 2017 among GAIN as borrower, Barclays, as administrative agent, collateral agent, arranger and documentation agent, Sterling National Bank as joint bookrunner, and the other lenders party thereto.
The Credit Agreement provided for a $50 million senior secured first lien revolving credit facility to be made available upon the terms and conditions set forth therein. While GAIN is in compliance with the various covenants contained in the Credit Agreement, due to the terms of the financial covenants contained therein, it is not currently permitted to draw under the facility. Given this and GAIN’s lack of significant utilization of the facility and the upcoming expiration of the facility under its terms in August 2020, the broker has determined for prudent cost management reasons to terminate the facility at this time.
The notice was delivered pursuant to Section 2.09(a) of the Credit Agreement, and terminates the facility effective as of January 13, 2020. There are no amounts outstanding under the facility and GAIN notes that it did not incur any material early termination penalties as a result of the termination.
