KCG pays down $200 million of its first-lien term loan under facility

By Tali David

Minneapolis, Oct. 23 - KCG Holdings, Inc. completed a $200 million repayment of the $535 million first-lien term loan under its first-lien senior secured credit facility, according to a press release.

KCG entered into the credit facility on July 1 to fund the acquisition of Knight Capital Group, Inc.

Under the terms of the facility, an amortization payment of $235 million is due on July 1, 2014, followed by amortization payments of $7.5 million each quarter beginning Sept. 30, 2014 until maturity on Dec. 5, 2017. Prepayments are permitted at any time without premium or penalty except in connection with certain refinancings.

The $200 million was drawn from about $117 million in cash held in a segregated account included in other assets and $83 million in available cash on the balance sheet.

We're pleased to have the financial flexibility to make such a significant initial paydown. The $200 million principal repayment will begin to reduce our future interest expense," chief financial officer Steve Bisgay said in the release. "We intend to continue aggressively paying down the debt incurred to finance the creation of KCG until we achieve the target capital structure for the firm."

KCG is a Jersey City, N.J.-based financial services firm.

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