INTL FCStone 2013 Annual Report Download - page 108

INTLFCSTONEINC.Form10K 87
PART II
ITEM 8Financial Statements and Supplementary Data
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 3.72% as of September 30,
2013. 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 September 30,
2013. e agreement also includes a non-nancial covenant that
requires the Company to provide audited nancial statements
for the scal year ended September 30, 2013 within ninety
days after the end of the scal year. e Company was unable
to deliver the audited nancial statements within the required
time period. e Company requested and was granted a waiver
from the lenders, dated December 23, 2013, extending the
time period the Company has to provide the audited nancial
statements through January 31, 2014. e Company paid debt
issuance costs of $1.5 million in connection with the issuance of
this credit facility, which are being amortized over the thirty-six
month term of the facility.
An unsecured syndicated committed line of credit, established
on June 21, 2010 and renewed by amendment on April 11,
2013, under which $75 million is available to the Company’s
subsidiary, FCStone, LLC 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 September 30, 2013. 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 September 30, 2013.
e facility is guaranteed by the Company.
A syndicated committed borrowing facility established on
August 10, 2012, and amended on July 30, 2013, under which
$75.0 million is available to the Company’s subsidiary, FCStone
Merchant Services, LLC (“FCStone Merchants”) for nancing
traditional commodity nancing arrangements and commodity
repurchase agreements. e facility is secured by the assets of
FCStone Merchants, and guaranteed by the Company. 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
3.75% as of September 30, 2013. e agreement contains
nancial covenants related to tangible net worth, as dened.
FCStone Merchants was in compliance with this covenant as
of September 30, 2013. FCStone Merchants paid minimal debt
issuance costs in connection with this credit facility.
Senior Unsecured Notes
On July 22, 2013, the Company completed the oering of
$45.5million aggregate principal amount of the Company’s
8.5% Senior Notes due 2020 (the “Notes”). e net proceeds
of the sale of the Notes are being used for general corporate
purposes. e Notes were issued under an Indenture dated as of
July 22, 2013, between the Company and e Bank of New York
Mellon, as Trustee (the “Trustee”). e Notes bear interest at a
rate of 8.5% per year (payable quarterly on January 30, April 30,
July 30 and October 30 of each year, beginning on October 30,
2013). e Notes will mature on July 30, 2020. e Company
may redeem the Notes, in whole or in part, at any time on and
after July 30, 2016, at a redemption price equal to 100% of the
principal amount redeemed plus accrued and unpaid interest
to, but not including, the redemption date. e Company
incurred debt issuance costs of $1.7 million in connection with
the issuance of the Notes, which are being amortized over the
term of the Notes.
e following table sets forth a listing of credit facilities, the committed amounts as of September 30, 2013 on the facilities, and
outstanding borrowings on the facilities as well as indebtedness on senior notes as of September 30, 2013 and 2012:
(in millions)
Credit Facilities
Borrower Security Renewal/Expiration Date
Total
Commitment
Amounts Outstanding
September 30,
2013
September 30,
2012
INTL FCStone Inc. Certain pledged shares September 20, 2016 $ 140.0 $ 55.0 $ 48.0
FCStone, LLC None April 10, 2014 75.0 — 20.0
FCStone Merchants Certain commodities assets May 1, 2014 75.0 6.0 43.2
INTL Commodities Certain commodities assets Expired July 31, 2013 — — 107.0
$ 290.0 61.0 218.2
Senior Unsecured Notes
8.50% senior notes, due July 30, 2020 45.5 
TOTAL INDEBTEDNESS $ 106.5 $ 218.2