Credit Facilities

Variable-Rate Credit Facilities

The Company has four committed credit facilities under which the Company and its subsidiaries may borrow up to $594.5 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 committed credit facilities are as follows:


•	$262.0 million facility available to INTL FCStone Inc. for general working capital requirements.


•	$75.0 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.


•	$232.5 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.


•	$25.0 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 Ltd may borrow up to £20.0 million, collateralized by commodities warehouse receipts, to facilitate financing of commodities under repurchase agreement services to its clients, subject to certain terms and conditions of the credit agreement.

The Company also has a secured, uncommitted loan facility, under which INTL FCStone Financial Inc. may borrow up to $75.0 million, collateralized by commodities warehouse receipts, to facilitate U.S. commodity exchange deliveries of its clients, subject to certain terms and conditions of the credit agreement. There were no borrowings outstanding under this credit facility at December 31, 2018, and September 30, 2018.

The Company also has a secured uncommitted loan facility under which INTL FCStone Financial Inc. may borrow for short term funding of firm and client securities margin requirements, subject to certain terms and conditions of the agreement. The uncommitted amount available to be borrowed is not specified, and all requests for borrowing are subject to the sole discretion of the lender. The borrowings are secured by first liens on firm owned marketable securities or client owned securities which have been pledged to the Company. The amounts borrowed under the facilities are payable on demand. As of December 31, 2018 and September 30, 2018, there were $20.0 million and $14.0 million, respectively, in borrowings outstanding under this credit facility.

The Company also has a secured uncommitted loan facilities, under which INTL FCStone Financial Inc. may borrow up to $150.0 million for short term funding of firm and client securities margin requirements, subject to certain terms and conditions of the agreement. The borrowings are secured by first liens on firm owned marketable securities or client owned securities which have been pledged to the Company. The amounts borrowed under the facilities are payable on demand. There were no borrowings outstanding under this credit facility at December 31, 2018, and September 30, 2018, respectively.

The Company also has a secured uncommitted loan facility under which FCStone Merchant Services, LLC can borrow up to $20.0 million to facilitate the financing of inventory of commodities and other products or goods approved by the lender in its sole discretion, subject to certain terms and conditions of the loan facility agreement. The loan facility is collateralized by a first priority security interest in goods and inventory of FCStone Merchant Services, LLC that is (a) either located outside of the U.S. and Canada or in transit to a destination outside the U.S. or Canada and (b) acquired with any extension of credit (whether in the form of a loan or by the issuance of a letter of credit) under the loan facility. As of December 31, 2018 and September 30, 2018, there were $5.9 million and $3.8 million, respectively, in borrowings outstanding under this credit facility.

Note Payable to Bank

The Company has a loan from a commercial bank, secured by equipment purchased with the proceeds. The note is payable in monthly installments, ending in March 2020.

The following table sets forth a listing of credit facilities, the current committed amounts as of the report date on the facilities, outstanding borrowings on the facilities, as well as indebtedness on a promissory note as of December 31, 2018 and September 30, 2018.



(in millions)
Credit Facilities						Amounts Outstanding
	Borrower	Security	Renewal / Expiration Date	Total Commitment		December 31, 2018		September 30, 2018
Committed Credit Facilities
	INTL FCStone Inc.	Pledged shares of certain subsidiaries	March 18, 2019	$	262.0	$	220.0	$	208.2
	INTL FCStone Financial Inc.	None	April 4, 2019	75.0		—		—
	FCStone Merchant Services, LLC	Certain commodities assets	November 1, 2019	232.5		163.5		128.0
	INTL FCStone Ltd.	None	February 28, 2019	25.0		25.0		—
				$	594.5	$	408.5	$	336.2

Uncommitted Credit Facilities
	INTL FCStone Financial Inc.	Commodities warehouse receipts and certain pledged securities	n/a	n/a		$	20.0	$	14.0
	INTL FCStone Ltd.	Commodities warehouse receipts	n/a	n/a		$	—	$	—
	FCStone Merchant Services, LLC	Certain commodities assets	n/a	n/a		$	5.9	$	3.8
Note Payable to Bank
	Monthly installments, due March 2020 and secured by certain equipment					1.0		1.2
Total Payables to lenders under loans						$	435.4	$	355.2

As reflected above, $594.5 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 these facilities when they expire, 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 December 31, 2018, the Company was in compliance with all of its financial covenants under its credit facilities.