LUK Leucadia National Corp.

FXCM Inc. reached a preliminary accord to extend its credit agreement with Leucadia National Corp. by a year to January 2018, potentially giving FXCM more time to raise funds to repay its debt by shedding noncore assets.

The online foreign-exchange trader also reported that it swung to a fourth-quarter loss amid weaker trading volume and revenue.

FXCM's shares, which have dropped 30% in the past 12 months, fell 22% to $11.40 in recent after-hours trading.

FXCM lost millions from retail clients who were caught on the wrong side of bets on the Swiss franc in January 2015. To continue operations, FXCM secured a $300 million loan from Jefferies Group LLC parent Leucadia National Corp. and has been paying down the loan.

As part of that rescue package, FXCM formed subsidiary FXCM Newco and gave it all equity interests owned by the holding company.

FXCM said Thursday that unit would be renamed FXCM Group LLC and Leucadia would own a 49.9% membership interest. The partnership would be governed by an eight-member board, including three members appointed by Leucadia, three directors appointed by FXCM, two independent directors and one each to be nominated by the two firms.

After January 2018, each firm would have a right to unwind the partnership, possibly resulting in a sale of FXCM Group. A long-term incentive program with a five-year vesting period would be put in place for FXCM senior management.

It is also anticipated that FXCM would change its name and stock ticker symbol, which would be determined at a later date.

For the three-month period ended Dec. 31, FXCM reported a loss of $105 million, or $19.29 a share, compared with a year-earlier profit of $15.8 million, or $3.56 a share. The latest period included a noncash charge of $99.9 million related to the company's credit agreement with Leucadia. Revenue dropped 34% to $67 million, mostly on a 30% decline in trading revenue.

Total trading volume dropped 16%, and average daily trades declined 5%.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

March 10, 2016 18:15 ET (23:15 GMT)

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