| Leucadia Transaction | Leucadia Transaction On January 15, 2015, the Company's customers suffered significant losses and generated negative equity balances ("debit balances") owed to it of approximately $275.1 million . This was due to the unprecedented volatility in the EUR/CHF currency pair after the Swiss National Bank (the "SNB") discontinued its currency floor of 1.2 CHF per EUR on that date. When a customer entered a EUR/CHF trade with the Company, the Company executed an identical trade with a FX market maker. During the historic move, liquidity became extremely scarce and shallow, which affected execution prices. This liquidity issue resulted in some customers having losses in excess of their account balance. While customers could not cover their margin call with the Company, the Company still had to cover the same margin call with the FX market maker. When a customer profits in the trade, the Company gives the profits to the customer, however, when the customer is not profitable on that trade the Company is obligated to pay the FX market maker regardless of whether the Company collects the funds from its customers. These debit balances resulted in a temporary breach of certain regulatory capital requirements. On January 16, 2015, Holdings and Group entered into the Credit Agreement with Leucadia, as administrative agent and lender, which was subsequently amended on January 24, 2015 and thereafter. On January 16, 2015, Holdings and Group also entered into a related financing fee agreement with Leucadia (the “Fee Letter”). The financing provided to the Company pursuant to these agreements, which is described below, enabled the Company to maintain compliance with regulatory capital requirements and continue operations. On January 16, 2015, the Corporation, Holdings, Group and Leucadia also entered into the Letter Agreement, which was subsequently amended on January 24, 2015, that set the terms and conditions upon which the Corporation, Holdings and Group would pay in cash to Leucadia and its assignees a percentage of the proceeds received in connection with certain transactions. In connection with these financing transactions, Holdings formed Group and contributed all of the equity interests owned by Holdings in its subsidiaries to Group. On September 1, 2016, the Company completed a restructuring transaction with Leucadia that, among other changes, amended the Credit Agreement and the Letter Agreement. The principal changes resulting from the restructuring transaction with Leucadia are described below. Restructuring Transaction On September 1, 2016, pursuant to the Restructuring Transaction, the Company and Leucadia agreed to amend the terms of the Credit Agreement and to terminate the Letter Agreement. The Letter Agreement was replaced with the Group Agreement. The Group Agreement replaces the existing FXCM Newco, LLC agreement and FXCM Newco, LLC was renamed FXCM Group, LLC (“Group”). Pursuant to the Group Agreement, Leucadia acquired a 49.9% membership interest in Group, with Holdings owning the remaining 50.1% membership interest in Group. Group and Holdings also entered into a management agreement pursuant to which Holdings managed the assets and day-to-day operations of Group (the "Management Agreement") until October 1, 2017, when the Management Agreement was terminated. Additionally, Group adopted the 2016 Incentive Bonus Plan for Founders and Executives (the “Management Incentive Plan”) under which participants were entitled to certain distributions made after the principal and interest under the Credit Agreement were repaid in their entirety. The Management Incentive Plan was terminated on November 8, 2017 (see Note 23). The events described herein are collectively referred to as the "Restructuring Transaction." Principal Changes to the Credit Agreement In connection with the Restructuring Transaction on September 1, 2016, the Company entered into a first amendment to the Credit Agreement (the “First Amendment”). The First Amendment extends the maturity date of the Credit Agreement by one year to January 16, 2018. Additionally, the First Amendment permits the Company to defer any three of the remaining interest payments by paying interest in kind. Until the Credit Agreement is fully repaid, all distributions and sales proceeds will continue to be used solely to repay the principal plus interest. The Company concluded that the terms of the First Amendment and the original credit agreement dated January 24, 2015 were not substantially different. Accordingly, the First Amendment was accounted for as a modification on a prospective basis pursuant to ASC 470, Debt ("ASC 470"). The components of interest expense related to the Credit Agreement, which are included in Interest on borrowings in the condensed consolidated statements of operations, including contractual interest, deferred interest and previously unamortized discounts, fees and costs, are amortized as an adjustment to interest expense over the remaining term of the Credit Agreement, as amended by the First Amendment, using the effective interest method. As described in Note 1 under "Financial Condition," in conjunction with the Plan, the terms of the Credit Agreement will, upon the effective date of the Plan, be amended to extend the maturity of the Term Loan under the Credit Agreement by an additional year to January 16, 2019 (see Note 23). Second Amendment to the Credit Agreement In connection with the CFTC regulatory fine of $7.0 million described in Note 1, Leucadia consented to waive compliance with provisions of the Credit Agreement and the Group Agreement regarding restricted payments (as defined in the Credit Agreement) in order to permit the distribution of $3.5 million of funds from Group to Holdings with respect to the payment of the fine (the “Payment”). Furthermore, the members of Group consented to waive compliance with provisions of the Group Agreement regarding distributions (as defined in the Group Agreement) with respect to the Payment. In consideration for entering into the waiver, the Company agreed to pay a fee to Leucadia in the amount of $3.5 million . On February 22, 2017, Group, Holdings and Leucadia entered into a second amendment to the Credit Agreement (the “Second Amendment”). Pursuant to the Second Amendment, the aggregate principal outstanding balance of the Credit Agreement was increased by $3.5 million . The Company concluded that the terms of the Second Amendment and the original credit agreement dated January 24, 2015 were not substantially different. Accordingly, the Second Amendment was accounted for as a modification on a prospective basis pursuant to ASC 470. The $3.5 million waiver fee was reflected as additional debt discount and is amortized as an adjustment to interest expense over the remaining term of the Credit Agreement, as amended by the First Amendment, using the effective interest method. Third Amendment to the Credit Agreement Leucadia consented to waive compliance with provisions in the Credit Agreement and the LLC Agreement regarding restricted payments (as defined in the Credit Agreement) in order to permit the distribution of funds from Group to Holdings on occasion with respect to the payment of certain expenses associated with the restructuring of the Convertible Notes (not to exceed $5.0 million in the aggregate). The members of Group also consented to waive compliance with provisions of the LLC Agreement regarding distributions (as defined in the LLC Agreement) to permit such payments. Additionally, Leucadia consented to waive compliance with the minimum fixed charge coverage ratio (as defined in the Credit Agreement) in order to permit Group to distribute the necessary funds to Holdings to make the interest payments due on the Convertible Notes. The above described consents and waivers are collectively referred to as the "Waiver". In consideration for entering into the Waiver, the Company agreed to pay a fee to Leucadia each time a payment is made equal to the amount of such payment through an increase to the aggregate principal outstanding balance of the Credit Agreement. On May 12, 2017, Group, Holdings and Leucadia entered into a third amendment to the Credit Agreement (the “Third Amendment”) to effect this agreement. From the date of the Third Amendment through September 30, 2017, the Company paid $2.4 million of such fees. Pursuant to the Third Amendment, the aggregate principal outstanding balance of the Credit Agreement was increased by $2.4 million . The Company concluded that the terms of the Third Amendment and the original credit agreement dated January 24, 2015 were not substantially different. Accordingly, the Third Amendment was accounted for as a modification on a prospective basis pursuant to ASC 470. The $2.4 million waiver fee was reflected as additional debt discount and is amortized as an adjustment to interest expense over the remaining term of the Credit Agreement, as amended by the First Amendment, using the effective interest method. Other than the changes described above resulting from the First Amendment, the Second Amendment, and the Third Amendment, the principal terms of the Credit Agreement remain unchanged. Principal Changes to the Letter Agreement Pursuant to the Restructuring Transaction, the Letter Agreement was terminated effective September 1, 2016 and the parties signed the Group Agreement. The Group Agreement provides that Group is governed by a six -member board of directors, comprising three directors appointed by Leucadia and three directors appointed by Holdings. The Group Agreement specifies the terms according to which the cash distributions and earnings or loss of Group are to be allocated to its members under the Current Waterfall, which is described below. Distributions from Group, other than certain permitted payments, cannot be made under the Group Agreement until the principal and interest due under the Credit Agreement are repaid. Pursuant to the Group Agreement, Leucadia and the Company each have the right to request the sale of Group after January 16, 2018, subject to both Leucadia and Holdings accepting the highest reasonable sales price. Management Agreement Leucadia had agreed to the Management Agreement with Holdings with an initial term through January 15, 2018, unless earlier terminated. In the Management Agreement, a number of rights were granted unilaterally to Holdings as the manager, including the right to create and implement a detailed budget, appoint and terminate the executive officers of Group and make day-to-day decisions in the ordinary course. On February 2, 2017, Group, Holdings and Leucadia entered into Amendment No. 1 to the Management Agreement (the “Management Agreement Amendment”), which amended the Management Agreement to provide that the Management Agreement may be terminated by a vote of at least three members of the board of directors of Group after the occurrence of an event for cause or a change of control (as defined). The Management Agreement Amendment did not change the Company's conclusion that Holdings is the primary beneficiary of Group and therefore Holdings continues to consolidate the financial results of Group. On October 1, 2017, the Management Agreement, as amended, was terminated by Holdings and Leucadia. The termination of the Management Agreement, as amended, did not change the Company's conclusion that Holdings is the primary beneficiary of Group and therefore Holdings continues to consolidate the financial results of Group. Management Incentive Plan In connection with the Restructuring Transaction, the Company adopted the 2016 Incentive Bonus Plan for Founders and Executives (the "Management Incentive Plan") effective September 1, 2016 (“Effective Date”). On February 2, 2017, Group and Leucadia entered into an acknowledgment that Leucadia may terminate the Management Incentive Plan on behalf of Group at any time and for any reason in its sole discretion. At adoption, the Company determined that the Management Incentive Plan was a share-based payment arrangement to be accounted for as a liability award under ASC 718. As of the Effective Date, the Company estimated the fair value of the Management Incentive Plan at $53.5 million . The Management Incentive Plan included a performance condition whereby it only becomes an obligation after the principal and interest under the Credit Agreement are fully repaid. Accordingly, compensation expense is recognized for the award over the requisite service period when it becomes probable that the performance condition would be satisfied pursuant to ASC 718. At each reporting date, the Company estimates the fair value of the Management Incentive Plan and assesses the probability of repaying the Credit Agreement and therefore of achieving the performance condition. As of September 30, 2017 , the fair value of the Management Incentive Plan was estimated at $20.5 million . As of September 30, 2017 , the Company determined that it is not probable that the performance condition would be satisfied and, accordingly, has not recognized compensation expense related to the award for the three and nine months ended September 30, 2017 . On November 8, 2017, the Management Incentive Plan was terminated (see Note 23). Allocations of Group Distributions (Current Waterfall) The contractual provisions in the Group Agreement specify how certain distributions from Group are to be allocated among Leucadia, the Company and the Company’s senior management members participating in the Management Incentive Plan (prior to the termination of the Management Incentive Plan) (see Note 23). The distributions include net proceeds received in connection with certain transactions, including sales of assets, dividends or other capital distributions, the sale of Group (whether by merger, stock purchase, sale of all or substantially all of Group’s assets or otherwise), the issuance of any debt or equity securities, and other specified non-ordinary course events, such as certain tax refunds and litigation proceeds. Due to the termination of the Management Incentive Plan on November 8, 2017, the Current Waterfall no longer contains any percentage for management, and thus, the Current Waterfall will result in the following distributions from Group: Distributable Amount Current Waterfall Amounts due under the Credit Agreement 100% Leucadia Next $350 million 50% Leucadia / 50% Holdings Next $600 million 90% Leucadia / 10% Holdings All aggregate amounts thereafter 60% Leucadia / 40% Holdings Leucadia’s Membership Interest in Group As indicated above, in exchange for the Letter Agreement, the Company issued a 49.9% non-controlling membership interest in Group to Leucadia. The remaining 50.1% controlling membership interest in Group is owned by Holdings and Holdings consolidates the financial results of Group, as discussed in Note 1. Leucadia has designated three directors to the board of directors of Group. The Chairman of the board of directors of Group is a managing director of Leucadia. As such, Leucadia participates in certain management, operational and investment decisions of Group, including, but not limited to, issuance of additional membership units or additional ownership interests in Group’s subsidiaries, issuance of debt (subject to certain limited exceptions), sales of assets (subject to certain limited exceptions), merger or consolidation with respect to Group or its subsidiaries, review and approval of the annual summary budget, administration of the Management Incentive Plan, and entry into or exit from a material line of business. In addition to the allocations of cash distributions and the net profit and net loss of Group described above, Leucadia and its assignees are entitled to tax distributions under the Group Agreement. If any such tax distributions are made, the amounts of such distributions reduce the payments to be made to Leucadia and its assignees pursuant to the Current Waterfall (other than with respect to the repayment of the Credit Agreement). The Group Agreement provides that following January 16, 2018, or, if earlier, at any time following a change of control (defined below), Leucadia and the Company will each have the right to cause the sale of Holdings, Group, and/or any of their respective subsidiaries for cash at the highest reasonably available price, subject to both Leucadia and Holdings reasonably accepting such sales price. Upon the occurrence of such event, Group will distribute the cash to Leucadia and the Company in accordance with the Current Waterfall described above. In the event of a change of control, at the election of Leucadia or its assignees, Holdings and Group will be required to pay Leucadia and its assignees in cash a one-time payment equal to the fair market value of their economic rights under the Group Agreement. For this purpose, change of control is generally defined as an event or series or events by which (i) a person or group acquires 40% or more of the voting interests of the Corporation, (ii) the Corporation and the existing members of Holdings cease to own 90% of the equity interests of Holdings, (iii) the Corporation ceases to be the sole managing member of Holdings or (iv) subject to certain exceptions, a majority of the members of the board of directors of the Corporation, Holdings or Group cease to be directors during a 12-month period. The Company obtained a consent and waiver from Leucadia on May 15, 2017 in order for the Corporation to reduce the size of its board of directors. Leucadia agreed to waive the change of control condition (iv) described above for a one-year period from the date of the consent and waiver solely to permit the Corporation to restructure and reduce the size of its board of directors. The Company evaluated the rights that Leucadia has related to its membership interest in Group under the Group Agreement, including board seats, voting rights and participation in key decisions that affect Group, as described above. The Company concluded that the legal form of the membership interest held by Leucadia is equity. The Company then considered the guidance under ASC 815, Derivatives and Hedging ("ASC 815"), and concluded that none of the features of the Group Agreement are required to be bifurcated and accounted for separately as a derivative. As the economic substance of the instrument significantly changed when Leucadia received non-controlling membership units in Group, the Company concluded that the exchange of the Letter Agreement for the membership interest was an extinguishment of the Letter Agreement. Accordingly, the derivative liability resulting from the Letter Agreement was derecognized as of the date of the Restructuring Transaction. As of the date of the Restructuring Transaction, the estimated fair value of the derivative liability was $235.5 million , which was also the fair value of the non-controlling membership units in Group, resulting in no gain or loss recognized on the exchange. The change in the estimated fair value of the derivative liability for the three and nine months ended September 30, 2016 was a loss of $26.1 million and a gain of $212.9 million , respectively, which were recorded in (Gain) loss on derivative liabilities — Letter & Credit Agreements in the condensed consolidated statements of operations. There is no Letter Agreement as of September 30, 2017 or December 31, 2016 . The Company considered the guidance in ASC 480 and determined that the non-controlling interest held by Leucadia falls within the scope of ASC 480 because it is redeemable for cash upon a contingent event that is not solely within the control of the Company and, accordingly, is classified outside of permanent equity on the condensed consolidated statements of financial condition as Redeemable non-controlling interest. The Company evaluates the probability of redemption at each reporting date. As of September 30, 2017 , the Company concluded that the non-controlling interest in Group is not currently redeemable and it is not probable that it will become redeemable as the likelihood that the redemption feature will be triggered is not considered probable. Accordingly, subsequent adjustment of the redeemable non-controlling interest to its estimated redemption value is not required pursuant to ASC 480. If the non-controlling interest in Group becomes redeemable, or if redemption becomes probable, an adjustment will be made to adjust the redeemable non-controlling interest to its estimated redemption value. The allocation of the cash distributions and earnings or loss from Group based on the Current Waterfall differs from the controlling and non-controlling members' stated ownership percentages. The Company determined that the Current Waterfall represents a substantive profit sharing arrangement and concluded that the appropriate methodology for calculating the redeemable non-controlling interest at each reporting date is the HLBV method. The Company applies the HLBV method using a balance sheet approach. Under the HLBV method, a calculation is performed at each balance sheet date to determine the amount the controlling and non-controlling member would each hypothetically receive assuming Group were liquidated at its recorded amount determined in accordance with U.S. GAAP and the cash distributed according to the Current Waterfall. The difference between the liquidating distribution amounts calculated at the beginning and end of each period, after adjusting for capital contributions and distributions, is the controlling and non-controlling members' share of the earnings or loss from Group. The non-controlling member's share is reported in Net income (loss) attributable to redeemable non-controlling interest in FXCM Group, LLC in the condensed consolidated statements of operations. At the date of the Restructuring Transaction, the redeemable non-controlling interest was initially recorded at its fair value of $235.5 million , and subsequently adjusted for the allocation of the net assets of Group among the controlling and non-controlling members according to the terms of the Current Waterfall to establish a carrying amount for the non-controlling interest at issuance on September 1, 2016 of $49.3 million (see Note 3). The share of the income or loss and other comprehensive income or loss of Group is allocated to the non-controlling member each reporting period based on the HLBV method. As of September 30, 2017 and December 31, 2016 , the carrying amount of the Redeemable non-controlling interest on the condensed consolidated statements of financial condition was $49.5 million and $46.4 million , respectively. Credit Agreement The Credit Agreement provided for the $300.0 million Term Loan made by Leucadia to Holdings and Group. The net proceeds of the Term Loan ( $279.0 million ) were used to replace capital in the Company’s regulated entities to cover negative client balances and pay down outstanding revolving debt. The Term Loan under the Credit Agreement matures on January 16, 2018. The obligations under the Credit Agreement are guaranteed by certain wholly-owned unregulated domestic subsidiaries of the Company and are secured by substantially all of the assets of Holdings and certain subsidiaries of the Corporation, including a pledge of all of the equity interests in certain of Holdings’ domestic subsidiaries and 65% of the voting equity interests in certain of its foreign subsidiaries. The Term Loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, until it reached a maximum of 20.5% per annum (before giving effect to any applicable default rate). Beginning with the fourth quarter of 2016, the interest rate on the Term Loan is 20.5% , which is fixed until maturity. Under certain circumstances, a default interest rate could apply on all obligations during the event of default at a per annum rate equal to 2% above the applicable interest rate. The Company has the right to defer any three of the remaining interest payments by paying interest in kind. The Company has not deferred any interest payments during the three and nine months ended September 30, 2017 or 2016. The Credit Agreement required the payment of a deferred financing fee in an amount equal to $10.0 million , with an additional fee of up to $30.0 million payable in the event the aggregate principal amount of the Term Loan outstanding on April 16, 2015 was greater than $250.0 million or the deferred financing fee of $10.0 million (plus interest) had not been paid on or before such date. Prior to April 16, 2015, the Company repaid approximately $56.5 million which reduced the aggregate principal to $243.5 million on April 16, 2015. Additionally, the Company paid the $10.0 million deferred financing fee prior to April 16, 2015. Accordingly, the Company was not obligated to pay the additional $30.0 million fee. As of September 30, 2017 , the Company has paid $248.3 million of principal, of which $10.0 million was applied to the deferred financing fee. The Credit Agreement is subject to various conditions and terms such as requiring mandatory prepayments, including from proceeds of dispositions, condemnation and insurance proceeds, debt issuances, equity issuances, and capital contributions. The Credit Agreement requires monthly payments of the Term Loan from proceeds received during the immediately preceding calendar month from accounts receivable related to customer debit balances. The Term Loan may be voluntarily prepaid without penalty. The Credit Agreement includes a variety of restrictive covenants, including, but not limited to: limitations on the ability to merge, dissolve, liquidate, consolidate or sell, lease or otherwise transfer all or substantially all assets; limitations on the incurrence of liens; limitations on the incurrence of debt by subsidiaries; limitations on the ability of Group to make distributions in respect of its equity interests including distributions to pay interest due on the Convertible Notes and limitations on transactions with affiliates, without the prior consent of the lender. The Credit Agreement also provides for events of default, including, among others: non-payments of principal and interest; breach of representations and warranties; failure to maintain compliance with the other covenants contained in the Credit Agreement; default under other material debt; the existence of bankruptcy or insolvency proceedings; insolvency; and a change of control. The Company initially allocated the net proceeds of $279.0 million between the Credit Agreement and the Letter Agreement based on their relative fair values. The estimated fair values of the Letter Agreement and the Credit Agreement were determined using an option pricing model based on significant inputs such as volatility and assumptions on public market pricing inputs. The initially recorded amounts for the Letter Agreement and the Credit Agreement were approximately $94.4 million and $184.6 million , respectively, net of an issuance fee of $21.0 million . The effective interest method is used to accrete the initial carrying value of the Credit Agreement liability to the par amount of the debt plus the $10.0 million deferred financing fee using an effective interest rate of 3.6% post-Third Amendment. The fair value of the Letter Agreement’s embedded derivatives that were required to be bifurcated totaled $124.8 million , which is in excess of the amount of proceeds initially allocated to the Letter Agreement, resulting in a charge to earnings of $30.4 million which was recorded in the first quarter of 2015. The Credit Agreement contains mandatory prepayment provisions in the event of certain events described above. The mandatory prepayments may be triggered by events or circumstances that are not considered clearly and closely related to the Credit Agreement, and, as such, represent embedded derivatives in accordance with ASC 815. Beginning with the second quarter of 2016, a decline in the fair value of the Credit Agreement below par resulted in value attributable to the embedded derivatives. The Company assessed the fair value of the embedded derivatives and bifurcated their value from the fair value of the Credit Agreement. The fair value of the derivative liability related to the embedded derivatives bifurcated from the Credit Agreement is estimated using the "with" and "without" method. Using this methodology, the Credit Agreement is first valued with the mandatory prepayment provision (the "with" scenario) and subsequently valued without the mandatory prepayment provision (the "without" scenario). The fair value of the derivative liability resulting from the mandatory prepayment provision is estimated as the difference between the fair values of the Credit Agreement in the "with" and "without" scenarios. The fair value of the Credit Agreement in the "with" and "without" scenarios was estimated using a risk-neutral valuation model which models expected cash flows over the life of the debt. As of September 30, 2017 and December 31, 2016 , the fair value of the derivative liability resulting from the Credit Agreement was estimated at nil and $6.2 million , respectively, and is included in Credit Agreement — Related Party on the condensed consolidated statements of financial condition. The change in the estimated fair value of the derivative liability at each reporting date is recorded in (Gain) loss on derivative liabilities — Letter & Credit Agreements in the condensed consolidated statements of operations. The balance of the Credit Agreement — Related Party as of September 30, 2017 and December 31, 2016 was as follows, with amounts in thousands: As of September 30, 2017 December 31, 2016 Debt principal $ 67,635 $ 154,509 Original issue discount (938 ) (7,857 ) Deferred waiver fee — Second Amendment (592 ) — Deferred waiver fee — Third Amendment (1,428 ) — Discount — issuance fee (192 ) (1,276 ) Deferred financing fee (139 ) (918 ) Debt issuance costs (17 ) (114 ) Embedded derivative — Mandatory prepayment provision — 6,172 Debt — net carrying value $ 64,329 $ 150,516 As of September 30, 2017 , the Credit Agreement — Related Party is reflected in current liabilities on the condensed consolidated statements of financial condition based on its maturity date. As of December 31, 2016 , the Credit Agreement — Related Party was included in non-current liabilities on the condensed consolidated statements of financial condition. Interest expense related to the Credit Agreement — Related Party included in Interest on borrowings in the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 , consists of the following, with amounts in thousands: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Contractual interest $ 4,732 $ 9,221 $ 18,569 $ 25,313 Deferred interest (715 ) (1,128 ) (2,342 ) (2,338 ) Amortization of original issue discount 2,235 6,835 6,919 23,905 Amortization of deferred waiver fee — Second Amendment 1,246 — 2,908 — Amortization of deferred waiver fee — Third Amendment 940 — 967 — Amortization of issuance fee discount 404 975 1,084 3,365 Amortization of deferred financing fee 291 702 779 2,422 Amortization of debt issuance costs 36 88 97 301 Total interest expense — Credit Agreement —Related Party $ 9,169 $ 16,693 $ 28,981 $ 52,968 The Company records deferred interest for the difference between the current period's contractual rate based on the terms of the Term Loan and the amortization of the incremental step-up in the contractual rate over the life of the Term Loan. The Company paid an issuance fee of $21.0 million to Jefferies LLC, an affiliate of Leucadia, at the inception of the Term Loan. The issuance fee was allocated to the Credit Agreement and the Letter Agreement based on the initial fair values of the Credit Agreement and the Letter Agreement. The portion of the issuance fee allocated to the Credit Agreement was $13.9 million and the portion allocated to the Letter Agreement was $7.1 million . The portion allocated to the Credit Agreement is reflected as a discount to the Term Loan balance on the condensed consolidated statements of financial condition, and is recorded to Interest on borrowings using the effective interest method. Subsequent to the date of the Restructuring Transaction, the discount is amortized over the remaining term of Credit Agreement. Amortization of the issuance fee included in Interest on borrowings was $0.4 million and $1.1 million for the three and nine months ended September 30, 2017 , respectively, and $1.0 million |
