StoneX Group has unveiled its intentions to issue a bond valued at $550 million set to mature in 2031.
This decision, contingent upon market conditions, is geared towards addressing the company’s financial requirements and refining its debt structure.
As stated in the press release, this offering is directed at qualified institutional buyers and specific entities beyond the borders of the United States.
StoneX plans to utilise the proceeds to redeem its existing 8.625% Senior Secured Notes maturing in 2025.
Furthermore, the funds generated from the latest bond issuance will enable the complete repayment of the company’s prevailing debt.
StoneX’s objective is to optimise its capital framework and curtail interest expenses by diminishing outstanding debt.
It is anticipated that the bond will yield interest semi-annually, thus contributing to the company’s financial commitments.
StoneX has underscored that the offering does not signify an offer to vend securities and will be executed through a private offering memorandum.
Recent financial reports for the initial quarter of the fiscal year 2024, as disclosed by Finance Magnates, showcased a substantial surge in revenue from forex and Contracts for Difference by StoneX.
Operating revenue for StoneX witnessed a notable increase, amounting to $74.6 million, primarily driven by retail sales of FX and CFD contracts.
The retail sales segment of the company contributed $66.6 million in operating revenue from October to December, marking a significant annual growth of 68%.
Conversely, revenue from the retail sale of physical securities contracts experienced a notable decline of 87%, totalling $0.8 million.
Despite a yearly decrease of 15% in the average daily volume from FX and CFDs, which amounted to $10.9 billion, the rate per million surged by 73% to $109.
However, revenue from FX and CFDs contracts saw a decline in the fourth quarter of the fiscal year 2023, ending on September 30.
Despite overall revenue growth for the group, its performance in the FX and CFDs sectors declined.
Headquartered in New York, StoneX Group is a prominent financial services conglomerate with interests spanning various sectors, including commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.
Its venture into the retail FX and CFDs industry ensued with the acquisition of GAIN Capital in 2020.