BGC secures $350 million committed bridge loan from Morgan Stanley

By Marisa Wong

Madison, Wis., Oct. 22 – BGC Partners, Inc. entered into a commitment letter on Tuesday with Morgan Stanley Senior Funding, Inc. for senior unsecured bank financing of up to $350 million under a 364-day bridge facility, according to an 8-K filing with the Securities and Exchange Commission.

Morgan Stanley will act as lead arranger, bookrunner and exclusive administrative agent for the bridge facility.

Pricing is based on the company’s debt ratings and will step up over time. The applicable margin for Libor loans ranges from 175 basis points to 300 bps for the first 89 days after closing and steps up to 225 bps to 350 bps 90 days after closing, to 275 bps to 400 bps 180 days after closing and to 325 bps to 450 bps 270 days after closing.

The facility includes financial covenants such as a minimum interest coverage ratio and maximum leverage ratio.

The financing is in connection with BGC’s cash tender offer to acquire GFI Group Inc.

BGC is a New York-based brokerage company.

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