http://www.cnbc.com/id/48516238
Knight Capital Group has been saved with an infusion of $400 million in the form of a convertible preferred security that gives the buyers the right to buy Knight shares at $1.50, according to sources close to the deal.
The private-equity firm of General Atlantic (which owns the Getco market maker) along with Blackstone private equity, Omaha brokerage firm TD Ameritrade [AMTD Loading... () ], and Stifel Nicolas will buy the $400 million preferred, which has a conversion price of $1.50.
The four buyers of the preferred will together own about 70 percent of the firm, which upon conversion of the preferred, will see its share count rise from a hundred million shares to roughly 350 million shares. The coupon on the preferred is 2 percent, but all the firms are expected to convert after 10 business days.
Knight Capital Group has been saved with an infusion of $400 million in the form of a convertible preferred security that gives the buyers the right to buy Knight shares at $1.50, according to sources close to the deal.
The private-equity firm of General Atlantic (which owns the Getco market maker) along with Blackstone private equity, Omaha brokerage firm TD Ameritrade [AMTD Loading... () ], and Stifel Nicolas will buy the $400 million preferred, which has a conversion price of $1.50.
The four buyers of the preferred will together own about 70 percent of the firm, which upon conversion of the preferred, will see its share count rise from a hundred million shares to roughly 350 million shares. The coupon on the preferred is 2 percent, but all the firms are expected to convert after 10 business days.