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Knight Capital says it has $400M financing deal

5:55 AM, Aug 6, 2012   |    comments
(Credit: KNBC)
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NEW YORK (AP) - Knight Capital says investors have agreed to supply it with $400 million in financing, which would help the trading firm stay in business after last week's disastrous software glitch shook that stock trading and jeopardized its future.

The company said in a regulatory filing on Monday that the unnamed investors agreed to buy $400 million of preferred stock that will be converted into about 267 million of its shares.

Knight Capital Group Inc., based in Jersey City, N.J., expects the transaction to be completed later in the day. A representative for the company could not be immediately reached for comment.

Despite its announcement of a deal, its shares were still down $1.23, or 30.4 percent, to $2.82 in premarket trading.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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