Credit Facilities

Variable-Rate Credit Facilities

The Company has four committed credit facilities under which the Company and its subsidiaries may borrow up to $370.0 million, subject to the terms and conditions for these facilities. The amounts outstanding under these credit facilities are short term borrowings and carry variable rates of interest, thus approximating fair value. The Company’s credit facilities consist of the following:

•

$205 million facility available to INTL FCStone Inc. for general working capital requirements. The Company amended the credit facility on March 18, 2016 resulting in an increase in the commitment from $140 million to $205 million, an extension of the maturity date to March 18, 2019, and the ability to increase the facility by an additional $50 million in the aggregate in one or more increases at any time prior to six months before the maturity date with the satisfaction of certain conditions. The Company paid debt issuance costs of $1.8 million in connection with the amendment of the credit facility, which are being amortized over the amended thirty-six month term.


•	$75 million facility available to the Company’s wholly owned subsidiary, INTL FCStone Financial Inc., for short-term funding of margin to commodity exchanges. The facility is subject to annual review and guaranteed by INTL FCStone Inc.

•

$65 million facility available to the Company’s wholly owned subsidiary, FCStone Merchant Services, LLC, for financing traditional commodity financing arrangements and commodity repurchase agreements. The facility is subject to annual review and is guaranteed by INTL FCStone Inc. The Company amended the credit facility on March 15, 2016 resulting in an increase in the commitment from $40 million to $65 million.


•	$25 million facility available to the Company’s wholly owned subsidiary, INTL FCStone Ltd, for short-term funding of margin to commodity exchanges. The facility is subject to annual review and is guaranteed by INTL FCStone Inc.

The Company also has a secured, uncommitted loan facility, under which the Company’s wholly owned subsidiary, INTL FCStone Financial Inc. may borrow up to $50.0 million, collateralized by commodity warehouse receipts, to facilitate U.S. commodity exchange deliveries of its customers, subject to certain terms and conditions of the credit agreement.

Note Payable to Bank

In April 2015, the Company obtained a $4.0 million loan from a commercial bank, secured by equipment purchased with the proceeds. The note is payable in monthly installments, ending in March 2020. The note bears interest at a rate per annum equal to LIBOR plus 2.00%.

Senior Unsecured Notes

In July 2013, the Company completed the offering of $45.5 million aggregate principal amount of the Company’s 8.5% Senior Notes due 2020 (the “Notes”). The net proceeds of the sale of the Notes are being used for general corporate purposes. The 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). The Notes mature on July 30, 2020. The 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. The 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.

The following table sets forth a listing of credit facilities, the committed amounts as of March 31, 2016 on the facilities, and outstanding borrowings on the facilities as well as indebtedness on a promissory note and on senior notes as of March 31, 2016 and September 30, 2015:



(in millions)
Credit Facilities						Amounts Outstanding
	Borrower	Security	Renewal / Expiration Date	Total Commitment		March 31, 2016		September 30, 2015
	INTL FCStone Inc.	Pledged shares of certain subsidiaries	March 18, 2019	$	205.0	$	105.9	$	28.0
	INTL FCStone Financial Inc.	None	April 6, 2017	75.0		—		—
	INTL FCStone Financial Inc.	Commodity warehouse receipts	n/a	—		—		—
	FCStone Merchants	Certain commodities assets	May 1, 2017	65.0		42.4		10.0
	INTL FCStone Ltd	None	October 31, 2016	25.0		—		—
				$	370.0	148.3		38.0
Note Payable to Bank
	Monthly installments, due March 2020 and secured by certain equipment					3.2		3.6
Senior Unsecured Notes
	8.50% senior notes, due July 30, 2020					45.5		45.5
Total indebtedness						$	197.0	$	87.1

As reflected above, $165 million of the Company’s committed credit facilities are scheduled to expire within twelve months of this filing. The Company intends to renew or replace this facility when it expires, and based on the Company’s liquidity position and capital structure, the Company believes it will be able to do so.

The Company’s credit facility agreements contain financial covenants relating to financial measures on a consolidated basis, as well as on a certain stand-alone subsidiary basis, including minimum tangible net worth, minimum regulatory capital, minimum net unencumbered liquid assets, maximum net loss, minimum fixed charge coverage ratio and maximum funded debt to net worth ratio. Failure to comply with these covenants could result in the debt becoming payable on demand. As of March 31, 2016, the Company was in compliance with all of its financial covenants under its credit facilities.