Jefferies provides update on FXCM loan repayment

Maria Nikolova

Jefferies’ filing with the SEC shows $71.4 million of principal remained outstanding under the term loan as of February 28, 2019.

Jefferies Financial Group Inc (NYSE:JEF), formerly known as Leucadia National Corporation, has posted a filing with the Securities and Exchange Commission (SEC), with the document providing some details on the Group’s financial performance for the quarterly period ended February 28, 2019. FinanceFeeds has already reported on Jefferies’ key financial metrics for the period, but the latest SEC filing provides information on the loan extended to FXCM.

In January 2015, Leucadia entered into a credit agreement with FXCM, and provided FXCM a $300 million senior secured term loan. According to the SEC filing, $71.4 million of principal remained outstanding under the term loan as of February 28, 2019. During the three months ended February 28, 2019, interest accrued at 20.5% per annum. Through February 28, 2019, Jefferies has received cumulatively $349.8 million of principal, interest and fees from its initial $279.0 million investment in FXCM.

Jefferies recorded income related to the term loan in Principal transactions revenues of $0.5 million during the three months ended February 28, 2019 and $8.6 million during the three months ended March 31, 2018.

Jefferies says its maximum exposure to loss as a result of its involvement with FXCM is limited to the carrying value of the term loan ($73.6 million) and the investment in associated company ($72.5 million), which totaled $146.1 million at February 28, 2019. This compares to a maximum loss exposure of $148.2 million at the end of November 2018. Apparently, the difference is not that big.

Jefferies estimates the fair value of its term loan by using a valuation model with inputs including management’s assumptions concerning the amount and timing of expected cash flows, the loan’s implied credit rating and effective yield. Because of these inputs and the degree of judgment involved, the company has categorized thos term loan within Level 3 of the fair value hierarchy.

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<