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2016-09-01

FXCM Inc. : Leucadia and FXCM Complete Long-Term Partnership Agreement

FXCM Inc. / Leucadia and FXCM Complete Long-Term Partnership Agreement.
Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely
responsible for the content of this announcement.
NEW YORK, Sept. 01, 2016 (GLOBE NEWSWIRE) -- Leucadia National Corporation
(NYSE:LUK) ("Leucadia") and FXCM Inc. (NYSE:FXCM) ("FXCM") today announced
that they have completed the process of deepening their partnership, with
Leucadia now holding a membership interest in FXCM's operating entity, FXCM
Group, LLC. (See below for a summary of definitive agreements.)

Rich Handler, Chief Executive Officer, and Brian Friedman, President of
Leucadia, stated: "We are pleased to affirm our long-term commitment and
investment in FXCM and are excited about our prospects for success. We look
forward to our role as board members of FXCM Group, LLC, and we believe that,
together, Leucadia and FXCM can further strengthen and expand the FXCM
platform."

Drew Niv, Chief Executive Officer of FXCM, stated: "We are delighted that
Leucadia has shown its commitment to FXCM by becoming a long-term partner.
This partnership can bring many benefits to FXCM shareholders, clients, and
employees. Leucadia's financial strength and its skill and expertise -
including the deep expertise available at Jefferies - make it the ideal
partner to help FXCM to continue to grow our business."

About Leucadia
Leucadia National Corporation, with a $45 billion balance sheet as of June 30,
2016, and ratings of Baa3 (Moody's)/BBB- (Standard&Poor's, Fitch), is a
diversified holding company engaged through its consolidated subsidiaries in
a variety of businesses, including investment banking and capital markets,
beef processing, manufacturing, oil and gas exploration and production and
asset management. The Company also owns equity interests in businesses that
are accounted for under the equity method of accounting, including a
diversified holding company, real estate, commercial mortgage banking and
servicing, telecommunication services in Italy, automobile dealerships and
development of a gold and silver mining project. As of year-end 2015,
Leucadia, through its consolidated subsidiaries and unconsolidated investee
companies, employed approximately 35,000 full-time employees.

About Jefferies
Jefferies, with a $37 billion balance sheet as of May 31, 2016, and ratings of
Baa3 (Moody's)/BBB- (Standard&Poor's, Fitch), is the world's only
independent, full-service global investment banking firm focused on serving
clients for over 50 years, and a leader in providing insight, expertise and
execution to investors, companies and governments. Jefferies provides a full
range of investment banking, sales, trading, research and strategy across the
spectrum of equities, fixed income and foreign exchange, as well as wealth
management, in the Americas, Europe and Asia. Jefferies Group LLC is a wholly
owned subsidiary of Leucadia.

About FXCM Inc.
FXCM Inc. (NYSE:FXCM) is a leading provider of online foreign exchange (FX)
trading, CFD trading, spread betting and related services. Our mission is to
provide global traders with access to the world's largest and most liquid
market by offering innovative trading tools, hiring excellent trading
educators, meeting strict financial standards and striving for the best
online trading experience in the market.

Clients have the advantage of mobile trading, one-click order execution and
trading from real-time charts. In addition, FXCM offers educational courses
on FX trading and provides free news and market research through DailyFX.com.

Trading foreign exchange and CFDs on margin carries a high level of risk,
which may result in losses that could exceed your deposits, and therefore may
not be suitable for all investors. Read full disclaimer.

This release contains "forward-looking statements" within the meaning of the
safe harbor provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include statements about future results and performance, including
future market share and expected financial results. It is possible that
actual results may differ materially from the anticipated results indicated
in these forward-looking statements. Please refer to each of Leucadia's,
Jefferies' and FXCM's most recent Annual Reports on Form 10-Ks for a
discussion of important factors that could cause actual results to differ
materially from those projected in these forward-looking statements.

Summary of Definitive Agreements

As described below, Leucadia and FXCM signed definitive agreements to amend
the terms of their Amended and Restated Credit Agreement (the "Credit
Agreement"), and to replace their Amended and Restated Letter Agreement (the
"Letter Agreement"), each dated January 24, 2015, with, among other
agreements, an amended Credit Agreement and a new Limited Liability Company
Agreement

Principal Changes to the Credit Agreement

* The maturity date of the Credit Agreement has been extended by one year to
January 16, 2018 to allow FXCM more time to optimize remaining asset sales.
While FXCM is actively marketing the non-core assets it has identified to
be sold, Leucadia and FXCM concluded that greater value could be realized
for all stakeholders through additional time to complete the asset sales.
* FXCM will have the right to defer any three of the remaining interest
payments by paying interest in kind, which will permit FXCM to maintaining
flexibility to invest and grow its core business.
* Until the loan under the Credit Agreement is fully repaid, all
distributions and sales proceeds will continue to be used solely to repay
the principal and interest.

Principal Changes to the Letter Agreement and Entry into the LLC Agreement,
Management Incentive Plan and Management Agreement

* The Letter Agreement was terminated effective September 1, 2016, and the
material terms of the Letter Agreement are now reflected in the Amended and
Restated Limited Liability Company Agreement of FXCM Group, LLC (the "LLC
Agreement").
* The existing FXCM Newco, LLC ("Newco") agreement has been replaced by the
LLC Agreement, and Newco has been renamed FXCM Group, LLC ("FXCM Group").
Leucadia owns a 49.9% membership interest in FXCM Group, and FXCM Holdings,
LLC owns a 50.1% membership interest in FXCM Group.
* The LLC Agreement provides that FXCM Group will be governed by an
eight-member board of directors, comprising three directors appointed by
Leucadia, who will be Rich Handler, Brian Friedman and Jimmy Hallac, three
directors appointed by FXCM, who will be Drew Niv, William Ahdout and David
Sakhai, and two independent directors, one each to be nominated by Leucadia
and FXCM within the next 90 days.
* Subject to certain exceptions, no FXCM Group distributions are permitted
under the LLC Agreement until the principal and interest due under the
Credit Agreement are repaid.
* Reflecting the new partnership, FXCM will share Leucadia's right to request
a sale process after January 16, 2018, subject to both Leucadia and FXCM
reasonably accepting the highest reasonable sales price.
* Concurrently with the execution of the LLC Agreement, FXCM Group and FXCM
Holdings, LLC entered into a Management Agreement pursuant to which FXCM
Holdings, LLC will manage the assets and day-to-day operations of FXCM
Group and its subsidiaries.
* Simultaneously with the execution of the LLC Agreement, FXCM Group adopted
the 2016 Incentive Bonus Plan for Founders and Executives, a long-term
incentive program with a five-year vesting period, in order to retain and
incentivize FXCM senior management to maximize cash flow generation and the
growth of the business. Distributions under the incentive program will be
made only after Leucadia's principal and interest under the Credit
Agreement are repaid and will equal the following: * 10% of all
distributions from FXCM Group up to $350 million; * 12% of all
distributions from FXCM Group from $350 million to $850 million; and * 14%
of all distributions from FXCM Group above $850 million.

Long-term incentive program participants will receive their share of any
distributions or sales proceeds while unvested. In addition, if a
participant is terminated from employment other than for cause or due to a
material breach of a restrictive covenant, he or she will receive either a
non-voting membership interest in FXCM Group that entitles the participant to
the same distributions he or she would have otherwise received under the
incentive program or a lump-sum cash amount, as determined by the plan
administrator in its sole discretion. If a participant is terminated from
employment for cause or due to a material breach of a restrictive covenant,
he or she would not be entitled to distributions following such termination
and will forfeit all interests under the plan. A termination payment will
also be paid upon any change of control of FXCM Group.

* Leucadia will be entitled to receive additional distributions of proceeds
that, when added to its 49.9% membership interest, result in the following
distribution percentages:

------------------------------------------------------------------------------------------------------------------------
| Old Waterfall New Waterfall |
| Amounts due under Credit Agreement 100% Leucadia 100% Leucadia |
| Next $350 million 50% Leucadia / 50% FXCM 45% Leucadia / 45% FXCM / 10.0% FXCM Management |
| Next $500 million 90% Leucadia / 10% FXCM 79.2% Leucadia / 8.8% FXCM / 12.0% FXCM Management |
| All aggregate amounts thereafter 60% Leucadia / 40% FXCM 51.6% Leucadia / 34.4% FXCM / 14.0% FXCM Management |
------------------------------------------------------------------------------------------------------------------------

Contacts:

Leucadia: Laura Ulbrandt, 212-460-1977

Jefferies: Richard Khaleel, 212-284-2556

FXCM: Jaclyn Sales, 646-432-2463

---------------------------------------

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FXCM Inc. via Globenewswire

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