Newmark to repay all $242 million on term loan via sale of units

By Sarah Lizee

Olympia, Wash., March 7 – Newmark Group, Inc. plans to fully repay the remaining $242 million balance of its unsecured senior term loan before the end of the first quarter using proceeds from a new investment by BGC Partners, Inc., according to a press release.

Newmark will use proceeds from the $242 million sale of its roughly 16.6 million newly issued exchangeable limited partnership units to BGC Partners to repay the term loan, which Newmark had previously assumed as borrower from BGC Partners.

As a result of the debt repayment, both BGC's consolidated and Newmark's stand-alone long-term debt are expected to be reduced by $270.7 million, all else equal, when compared to year-end 2017.

Both companies therefore expect annualized interest expenses to decrease by more than $11.4 million and expect to have ratios of long-term debt to adjusted EBITDA of below 2.5 times as of the end of the first quarter of 2018.

BGC Partners is a financial services company based in New York. Newmark, a subsidiary of BGC, is a commercial real estate company that is also based in New York.

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