AUGUST 6, 2012
Knight Capital Group Completes $400 Million Equity
Infusion of new capital and resulting liquidity will allow Knight to resume normal operations
JERSEY CITY, N.J., Aug. 6, 2012 /PRNewswire/ Knight Capital Group, Inc. (NYSE Euronext: KCG) announced $400
million in equity financing with Wall Street firms including Jefferies Group, Inc., which conceived and structured the investment, as well as Blackstone, GETCO LLC, Stephens, Stifel Financial Corp. and TD Ameritrade Holding Corporation.
We are grateful for the support of these leading Wall Street firms that came together to invest in Knight, said Tom Joyce, Chairman and Chief
Executive Officer, Knight Capital Group. The array of participants in this capital infusion underscores Knights critical role in the capital markets. With our financial position strengthened and liquidity restored, we will continue to
provide clients with trading in a broad range of securities, high-quality execution and outstanding client service.
Under the terms of
the transaction, Knight issued two percent preferred shares that may be converted into common stock at $1.50 per share. The owners of the preferred shares may convert all or a portion of the preferred shares into Knight Class A Common Stock.
Knight has committed to expand its Board of Directors by adding three new members. Additional details on the financing will be available in a Form 8-K to be filed today.
Knights financial position and capital base have been restored to a level that more than offsets the loss incurred last week. We thank our clients, employees and partners for their
steadfastness during a brief yet difficult period and we are getting back to business as usual, added Mr. Joyce.
announced, the software that led to the August 1, 2012 trading issue was removed from the companys systems. The company continues to review the matter.
The advisors to Knight on the transaction are Sandler ONeill + Partners, L.P. and Wachtell, Lipton, Rosen & Katz.
Knight Capital Group (NYSE Euronext: KCG) is a global financial
services firm that provides access to the capital markets across multiple asset classes to a broad network of clients, including broker-dealers, institutions and corporations. Knight is headquartered in Jersey City, N.J. with a global presence
across the Americas, Europe, and the Asia Pacific regions. For further information about Knight, please visit www.knight.com.
Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about the Companys industry, managements beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict including, without limitation, risks associated with the August 1,
2012 disruption to routing in NYSE-Listed securities and the impact to the Companys capital
structure, risks associated with the Companys ability to recover all or a portion of the damages that are attributable to the manner in which NASDAQ OMX handled the Facebook IPO, risks related to the corporate restructuring in the third
quarter 2011, including the ability to recognize anticipated cost savings, the possibility of unexpected costs or expenditures, and the impact of the restructuring on the Companys businesses and results of operations, risks associated with
changes in market structure, legislative, regulatory and financial rules changes, risks associated with the Companys changes to its organizational structure and management and the costs, integration, performance and operation of businesses
recently acquired or developed organically, or that may be acquired or developed organically in the future. Readers should carefully review the risks and uncertainties disclosed in the Companys reports with the U.S. Securities and Exchange
Commission (SEC), including, without limitation, those detailed under the headings Certain Factors Affecting Results of Operations and Risk Factors in the Companys Annual Report on Form 10-K for the year-ended
December 31, 2011, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. This information should also be read in conjunction with the Companys Consolidated Financial Statements and the Notes
thereto contained in the Companys Annual Report on Form 10-K for the year-ended December 31, 2011, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time.
SOURCE Knight Capital Group, Inc.
Fitzsimmons, Managing Director, Media Relations, +1-201-356-1523, firstname.lastname@example.org, Jonathan Mairs, Director, Corporate Communications & Investor Relations, +1-201-356-1529, email@example.com
The matters described within the Investor Relations section of the Knight Capital Group (the Company) Web site contain forward-looking
statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Companys control, which
could cause actual results to differ materially from historical results, performance or other expectations and from any opinions or statements expressed with respect to future periods. These factors include, but are not limited to, the
Companys ability to implement its growth strategies, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, intellectual property rights, and other factors detailed in the
Companys registration statement and periodic reports filed with the Securities and Exchange.