Knight Capital (KCG) Saved, But at a Hefty Cost
Tweet Send to a Friend
Get Alerts KCG Hot Sheet
Up)
Trade KCG Now!
Knight Capital Group, Inc. (NYSE: KCG) is trading sharply lower early Monday following reports that while the company is close to securing $400 million in financing it will come at a hefty price to common shareholders.
An investment group including private equity firms Blackstone Group and General Atlantic, and brokerages TD Ameritrade and Stifel Nicolas will inject $400 million in capital through convertible preferred stock, which will have a conversion price of $1.50 per share and carry a coupon of 2 percent.
The Preferred Stock will be convertible into approximately 267 million shares of common stock of the Company.
The buyers would own about 70 percent of Knight following the conversion, according to reports from CNBC.
Shares of Knight last traded at $2.90, down 29 percent from Friday's close.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
An investment group including private equity firms Blackstone Group and General Atlantic, and brokerages TD Ameritrade and Stifel Nicolas will inject $400 million in capital through convertible preferred stock, which will have a conversion price of $1.50 per share and carry a coupon of 2 percent.
The Preferred Stock will be convertible into approximately 267 million shares of common stock of the Company.
The buyers would own about 70 percent of Knight following the conversion, according to reports from CNBC.
Shares of Knight last traded at $2.90, down 29 percent from Friday's close.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Fannie Mae, Freddie Mac Surge as Seriously Delinquent Rate Falls Below 3%
- A.G. Lafley Returns as President/CEO of Procter & Gamble (PG)
- Tesla Motors (TSLA) Taps New 52-Week High
Create E-mail Alert Related Categories
Corporate News, Hot Corp. News, Hot List, Trader Talk
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
