INTL FCStone 2012 Annual Report Download - page 98
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Please find page 98 of the 2012 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.INTL FCSTONE INC.Form10K82
PART II
ITEM 8 Financial Statements and Supplementary Data
NOTE 10 Credit Facilities
As of September30, 2012, the Company had four committed
credit facilities under which the Company may borrow up to
$385.0 million, subject to certain conditions. e amounts
outstanding under these credit facilities are short term borrowings
and carry variable rates of interest, thus approximating fair value.
e Company’s credit facilities as of September30, 2012 consisted
of the following:
A three-year syndicated committed loan facility established on
October29, 2010 and amended on May22, 2012 to increase the
amount under which the Company is entitled to borrow, up to
$95 million, subject to certain conditions. e loan proceeds are
used to nance working capital needs of the Company and certain
subsidiaries. e line of credit is secured by a pledge of shares
held in certain of the Company’s subsidiaries. Unused portions
of the loan facility require a commitment fee of 0.625% on the
unused commitment. Borrowings under the facility bear interest
at the Eurodollar Rate, as de ned, plus 3.00% or Base Rate, as
de ned, plus 2.00%, and averaged 3.22% as of September30,
2012. e agreement contains nancial covenants related to
consolidated tangible net worth, consolidated domestic tangible
net worth, consolidated interest coverage ratio and consolidated
net unencumbered liquid assets, as de ned. e Company was
in compliance with these nancial covenants as of September30,
2012. e Company paid debt issuance costs of $1.2 million
in connection with the issuance of this credit facility, which are
being amortized over the thirty-six month term of the facility.
A revolving syndicated committed loan facility established on
September22, 2010 and amended on September18, 2012,
under which the Company’s subsidiary, INTL Commodities,
Inc. (“INTL Commodities”) is entitled to borrow up to $140
million, subject to certain conditions. e loan proceeds are
used to nance the activities of INTL Commodities and are
secured by its assets. Unused portions of the loan facility require
a commitment fee of 0.75% on the unused commitment. e
borrowings outstanding under the facility bear interest at the
Eurodollar Rate, as de ned and 0.21% as of September30, 2012,
plus 2.875% for the applicable term, at INTL Commodities’
election. e agreement contains nancial covenants related
to INTL Commodities’ working capital, equity and leverage
ratio, as de ned. e Company was in compliance with these
covenants as of September30, 2012. e Company paid debt
issuance costs of $0.2 million in connection with the renewal
of this credit facility, which are being amortized over the four
month remaining term of the facility. e facility is guaranteed
by the Company.
An unsecured syndicated committed line of credit, established
on June21, 2010 and renewed by amendment on April12,
2012, under which the Company’s subsidiary, FCStone, LLC,
may borrow up to $75 million. is line of credit is intended to
provide short term funding of margin to commodity exchanges as
necessary. is line of credit is subject to annual review, and the
continued availability of this line of credit is subject to FCStone,
LLC’s nancial condition and operating results continuing to
be satisfactory as set forth in the agreement. Unused portions
of the margin line require a commitment fee of 0.50% on the
unused commitment. Borrowings under the margin line are on
a demand basis and bear interest at the Base Rate, as de ned,
plus 2.00%, which was 5.25% as of September30, 2012. e
agreement contains nancial covenants related to FCStone, LLC’s
tangible net worth, leverage ratio, and net capital, as de ned.
FCStone, LLC was in compliance with these covenants as of
September30, 2012. e facility is guaranteed by the Company.
A syndicated committed borrowing facility established on
August10, 2012, and amended on September14, 2012, under
which the Company’s subsidiary, FCStone Merchant Services,
LLC (“FCStone Merchants”) is entitled to borrow up to $75.0
million, subject to certain conditions. e loan proceeds are used
to nance traditional commodity nancing arrangements or the
purchase of eligible commodities from sellers who have agreed
to sell and later repurchase such commodities from FCStone
Merchants, and are secured by its assets. Unused portions of the
borrowing facility require a commitment fee of 0.50% on the
unused commitment. e borrowings outstanding under the
facility bear interest at a rate per annum equal to the Base Rate
plus Applicable Margin, as de ned, which averaged 2.39% as of
September30, 2012. e agreement contains nancial covenants
related to tangible net worth, as de ned. FCStone Merchants
was in compliance with this covenant as of September30,
2012. FCStone Merchants paid minimal debt issuance costs in
connection with this credit facility. e facility is guaranteed
by the Company.