Forex broker FXCM announced today that $15 million worth of Class A common shares will be sold “at-the-market” through Jefferies LLC, which will be acting as the sales agent for the offering. According to the SEC filing, Jefferies will be compensated via a 3 percent commission of the “gross sales price per share for any shares sold.”
According to the prospectus supplement, Jefferies will have the option to purchase Class A common stock from FXCM for its own account:
"Under the terms of the equity distribution agreement, we also may sell shares to the sales agent, as principal for its own account, at a price per share to be agreed upon at the time of sale. If we sell shares to the sales agent, acting as principal, we will enter into a separate terms agreement with the sales agent setting forth the terms of such transaction, and we will describe the terms agreement in a separate prospectus supplement or pricing supplement."Per FXCM’s press release, proceeds from the Common Stock offering will go towards paying down existing debts and “other general corporate purposes.”
FXCM’s prospectus supplement reads:
“We have not yet determined which of our outstanding indebtedness will be repaid with the proceeds of this offering.”The SEC filing, which was completed today by FXCM, states that shareholders of Class A common shares are entitled to one vote for each share held, with the added benefit of receiving dividends that are approved by the board of directors.
FXCM’s new offering comes just days after the company sold Dailyfx.com, its market research and news service, to IG Group for $40 million. An unexpected deal that FXCM framed as a welcome opportunity to be taken advantage of given the company’s outstanding debt to Leucadia, which currently stands at $153 million.