LUK Leucadia National Corp.

FXCM Inc. has won an extra year to pay back its rescue package from Leucadia National Corp., giving the foreign-exchange broker more time to pursue asset sales.

Leucadia, the parent of Jefferies Group LLC, agreed in January 2015 to invest $300 million in FXCM following its troubles when the Swiss National Bank decided to remove the cap on its currency. The original investment came in the form of a senior secured-term loan with a two-year maturity and an initial coupon of 10%. The extension unveiled Thursday pushed the maturity date back to January 16, 2018.

FXCM has pursued a number of noncore asset sales since early 2015 to repay its debt. Among other moves, it agreed last year to sell its Japan business to a brokerage unit of e-commerce giant Rakuten Inc. for $62 million, and Jefferies itself acquired Faros Trading, FXCM's institutional unit.

New York-based FXCM is still marketing additional assets, and Leucadia and FXCM said Thursday that they believe the company could achieve greater value from the sales with additional time.

Under the amended terms of the loan, FXCM will have the right to defer any three of the remaining interest payments by paying interest in kind, which the companies said would give FXCM the opportunity to invest and grow its core business.

Leucadia and FXCM also entered into a new LLC agreement to rename FXCM's operating unit as FXCM Group LLC. Leucadia will own a 49.9% membership interest.

The new agreement provides that FXCM Group be governed by an eight-member board: three appointed by Leucadia, three appointed by FXCM and two independent directors, one each to be nominated by Leucadia and FXCM within the next 90 days.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

September 01, 2016 09:45 ET (13:45 GMT)

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