GFI Holdco plans $225 million term loan for brokerage businesses buy

By Sara Rosenberg

New York, July 31 – GFI Holdco Inc. has received a commitment for a $225 million five-year senior secured term loan to fund its acquisition of GFI Group’s wholesale brokerage and clearing businesses for $165 million in cash and the assumption of about $63 million of unvested deferred compensation and other liabilities, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Jefferies Finance LLC is the lead bank on the deal.

The term loan is expected to be priced at Libor plus 525 basis points with a 1% Libor floor, and there is 101 soft call protection for one year.

Amortization on the term loan is 2.5% in year one and 5% per year thereafter.

Closing is expected in early 2015.

GFI is a New York-based provider of trading technologies and support services.

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