KCG Kcg Holdings Class A

KCG Holdings , I nc .

(Exact name of registrant as specified in its charter)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

1.01 Entry Into a Material Definitive Agreement

On June 5, 2017, KCG Americas, LLC (“KCGA”), a wholly owned broker-dealer subsidiary of KCG Holdings, Inc. (“KCG”), as borrower, KCG, as guarantor, the lenders from time to time party thereto, BMO Harris Bank N.A., as administrative agent, Bank of New York, as collateral agent, and BMO Capital Markets as lead arranger and book runner (collectively, the “parties”) entered into the First Amendment to Credit Agreement (the “Amendment”), which amends that certain credit agreement, dated June 5, 2015, between KCGA, as borrower, KCG, as guarantor, the lenders from time to time party thereto, BMO Harris Bank N.A., as administrative agent, Bank of America, N.A., as syndication agent, and BMO Capital Markets and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead arrangers and joint book runners (the “Original Facility Agreement”, and, as amended by the Amendment, the “KCGA Facility Agreement”). The description of the Original Facility Agreement filed by KCG on Form 8-K on June 9, 2015 is hereby incorporated by reference.

The Amendment, among other things, reduces the lenders’ aggregate commitments under the KCGA Facility Agreement from $355,000,000 to $260,000,000, extends the maturity of the facility from June 5, 2017 to June 4, 2018, and reduces the margins on borrowings under the facility. Borrowings under the facility shall bear interest, at a rate based on the federal funds rate (such loans referred to as “Base Rate Loans”) or based on LIBOR (such loans referred to as “Eurodollar Loans”), at KCGA’s option, in each case plus an applicable margin. The Amendment reduces the margin on each Base Rate Loan and Eurodollar Loan from (a) for each Revolving A Loan (as defined in the KCGA Facility Agreement) from 1.50% to 1.25% per annum and (b) for each Revolving B Loan (as defined in the KCGA Facility Agreement) from 2.50% to 2.25% per annum.

The Amendment also amends a financial covenant under the KCGA Facility Agreement by increasing the minimum level of Excess Net Capital (as defined in the KCGA Facility Agreement) that KCGA must maintain from $75,000,000 to $100,000,000. In addition, the Amendment reduces availability of Revolving B Loans by reducing the Revolving B Sublimit (as defined in the KCGA Facility Agreement) from $115,000,000 to $100,000,000.

The foregoing summary is qualified by reference to the full text of the Amendment, which is filed as Exhibit 10.1 hereto and incorporated by reference herein.

KCG Holdings, Inc. (NYSE:KCG)
Historical Stock Chart
From Mar 2024 to Apr 2024

KCG Holdings, Inc. (NYSE:KCG)
Historical Stock Chart
From Apr 2023 to Apr 2024