KCG ANNOUNCES FULL REPAYMENT OF FIRST LIEN CREDIT FACILITY
April 15 2014 - 9:20AM
KCG ANNOUNCES
FULL REPAYMENT
OF FIRST LIEN CREDIT FACILITY
KCG will save a minimum of $66.4 million in total interest
expense
from early repayments of
the loan
JERSEY CITY, N.J. - April
15, 2014 - KCG Holdings, Inc. (NYSE: KCG) today announced
the completion of a $50 million principal repayment of the first
lien term loan under the Company's first lien senior secured credit
facility. With the repayment, KCG has fully repaid the $535 million
loan entered into on July 1, 2013 and terminated the facility ahead
of its December 5, 2017 maturity date.
Daniel Coleman, Chief Executive Officer of KCG,
said, "We're pleased to have the ability to aggressively pay off
the debt associated with financing the merger. In under a year
since the close, we've substantially reached the target capital
structure and dramatically lowered our future interest expense.
Going forward, we have added flexibility in terms of utilizing cash
generated from day-to-day activities."
The $50 million repayment was sourced from
internally generated excess liquidity. As a result of the
repayment, KCG will record a writeoff of $2 million in capitalized
debt costs in the second quarter of 2014. In all, KCG will save a
minimum of $66.4 million in total interest expense from the full
early repayment of the loan compared to following the prescribed
repayment schedule through the maturity date.
With the full repayment of the first lien term
loan, KCG is free of the covenants contained in the loan, including
an annual $15 million cap on share repurchases. KCG remains subject
to a limitation on share repurchases based in part on operating
results under covenants of the Company's second lien senior secured
notes.
About KCG
KCG is a leading independent securities firm offering investors a
range of services designed to address trading needs across asset
classes, product types and time zones. The firm combines advanced
technology with exceptional client service across market making,
agency execution and venues. KCG has multiple access points to
trade global equities, fixed income, currencies and commodities via
voice or automated execution. www.kcg.com
Certain statements contained herein may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are typically identified by words
such as "believe," "expect," "anticipate," "intend," "target,"
"estimate," "continue," "positions," "prospects" or "potential," by
future conditional verbs such as "will," "would," "should," "could"
or "may," or by variations of such words or by similar expressions.
These "forward-looking statements" are not historical facts and are
based on current expectations, estimates and projections about
KCG's industry, management's beliefs and certain assumptions made
by management, many of which, by their nature, are inherently
uncertain and beyond our control. Any forward-looking statement
contained herein speaks only as of the date on which it is made.
Accordingly, readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict including, without limitation, risks associated with:
(i) the strategic business combination (the "Mergers") of Knight
Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC
("GETCO"), including, among other things, (a) difficulties and
delays in integrating the Knight and GETCO businesses or fully
realizing cost savings and other benefits, (b) the inability to
sustain revenue and earnings growth, and (c) customer and client
reactions to the Mergers; (ii) the August 1, 2012 technology issue
that resulted in Knight's broker-dealer subsidiary sending numerous
erroneous orders in NYSE-listed and NYSE Arca securities into the
market and the impact to Knight's capital structure and business as
well as actions taken in response thereto and consequences thereof;
(iii) the costs and risks associated with the sale of Knight's
institutional fixed income sales and trading business, the sale of
KCG's reverse mortgage origination and securitization business and
the departure of the managers of KCG's listed derivatives group;
(iv) changes in market structure, legislative, regulatory or
financial reporting rules; (v) past or future changes to
organizational structure and management; (vi) KCG's ability to
develop competitive new products and services in a timely manner
and the acceptance of such products and services by KCG's customers
and potential customers; (vii) KCG's ability to keep up with
technological changes; (viii) KCG's ability to effectively identify
and manage market risk, operational and technology risk, legal
risk, liquidity risk, reputational risk, counterparty and credit
risk, international risk, regulatory risk, and compliance risk;
(ix) the cost and other effects of material contingencies,
including litigation contingencies, and any adverse judicial,
administrative or arbitral rulings or proceedings; and (x) the
effects of increased competition and KCG's ability to maintain and
expand market share. The list above is not exhaustive. Readers
should carefully review the risks and uncertainties disclosed in
KCG's reports with the SEC, including, without limitation, those
detailed under "Risk Factors" in KCG's Annual Report on Form 10-K
for the year-ended December 31, 2013, and other reports or
documents KCG files with, or furnishes to, the SEC from time to
time.
CONTACTS
Sophie
Sohn |
Jonathan
Mairs |
Communications & Marketing |
Investor
Relations |
312-931-2299 |
201-356-1529 |
media@kcg.com |
jmairs@kcg.com |
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: KCG Holdings, Inc. via Globenewswire
HUG#1777385
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