Replies to post #4406 on Global Brokerage Inc. (GLBR)

[nvidiaforgames]

Gaha, well that was settled quick!
FXCM

[phishtrick]

Business is carrying on, users of FXCM (forex traders) have gone nowhere and continue to trade. No worries here.

[The Rainmaker]

It's like a mortgage....a higher interest rate wont hurt you as long as you pay your loan balance way down before the higher rates kick in. Right now they owe $300 million. Sale of Non-core assets and client account recoveries will pay this loan balance way down. By the time the higher rates kick in they should be paying interest on way less money.

[MJames89]

"The 20.5 would not come into play until the last quarter of the loan."

True, but the difference impacts the last three quarters.

Before:
10%, 11.5%, 13%, 14.5%, 16%, 17%, 17%, 17%

Now:
10%, 11.5%, 13%, 14.5%, 16%, 17.5%, 19%, 20.5%

To assume that most of the loan will be paid off by then is very optimistic. FastMatch for $70M was identified. It'll be a challenge to find anything else that doesn't impact the whole business. The rest has to be paid from operating cash flow, something which they had very little of in the first nine months of 2014 if you review their financials from Q3.

[d3vnu11]

Leucadia cannot force the sale of the company for 3 years, plenty of time to pay back the loan.