GFI to repay existing $75 million loan with new borrowings from BGC

By Tali Rackner

Norfolk, Va., Oct. 1 – GFI Group Inc. plans to repay the entire $75 million outstanding under its credit agreement maturing Dec. 20, 2015 with Bank of America, NA, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement will be repaid on Oct. 2.

In order finance the repayment, on Oct. 1, GFI agreed to borrow $75 million from BGC Partners, Inc.

The loan bears interest at Libor plus 200 basis points. Due to intercompany eliminations, the loan will have no impact on the consolidated balance sheet or income statement of BGC Partners, the filing said.

To make the new loan, BGC agreed to borrow $100 million under a previously authorized $150 million revolving credit facility with Cantor Fitzgerald, LP.

The revolver bears interest at Libor plus 325 bps and may be adjusted based on Cantor’s short-term borrowing rate then in effect plus 1%.

The facility matures on Aug. 10, 2017. BGC expects that the revolver will be repaid and replaced with a new third-party credit facility with a syndicate of banks by the end of the year.

GFI is a brokerage and trade execution company based in New York City. BGC Partners owns roughly 67% of GFI’s common stock and currently consolidates the financial statements of GFI, and Cantor has a controlling interest in BGC Partners.

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