Futures broker MF Global Ltd. today said in a statement that a bank syndicate committed a $450 million, two-year new credit facility to refinance part of the $1.4 billion bridge loan related to MFs July 2007 IPO. MF plans to repay the bridge loan via a $350 million five-year credit line; the $300 million sale of equity-linked securities; and $300 million in available capital.
The refinancing is anticipated to be completed by the end of July, the firm said in a statement.
MF Global also said it has set aside $10 million to cover potential civil monetary penalties related to a Feb. 28 unauthorized trade by one employee, which resulted a $141.5 million loss. The reserves were also set aside in relation to two other pending investigations before the Commodity Futures Trading Commission.
The global derivatives trading firm today also said it has created a new position of chief operating officer and hired Bernard Dan, former CEO of the Chicago Board of Trade, now part of CME Group Inc., for the position.