FXCM already has a strong balance sheet with over $400 million in cash.
Leading forex broker FXCM (NYSE:FXCM) announced today that it has extended its $155 million credit facility by $50 million to $205 million — and under certain circumstances it can be further extended to $250 million. The maturity of the facility was extended by three years, out to December 2016.
FXCM CEO Drew Niv pointed out the reason for the increased borrowing capacity was to “execute on our strategic objectives” — which in CEO-speak means acquisitions. FXCM has not been shy before about making acquisitions. Recent FXCM purchases include:
- $15.6 million acquisition of institutional FX research shop Faros Trading, September 2013
- $12 million note issued by commodities market maker Infinium Capital, October 2013
- US clients of Alpari, September 2013
- $176 million acquisition of institutional FX market maker Lucid Markets, June 2012
For the complete FXCM pres release on its credit facility extension click here.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.