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BGC Partners converts $400 million revolving loans to term loan
By Marisa Wong
Morgantown, W.Va., Nov. 28 – BGC Partners, Inc. entered into an amendment on Nov. 22 to each of its two credit agreements dated Sept. 8 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The first credit agreement provided for a $400 million two-year unsecured senior revolving credit facility, and the second credit agreement provided for a $575 million two-year unsecured senior term loan.
The amendments convert the outstanding balance of revolving loans under the revolving credit facility, totaling $400 million, to a term loan.
Effective as of the date that the separation of BGC’s real estate services businesses (the Newmark businesses) from the remainder of BGC’s businesses and the contribution of the Newmark businesses to Newmark Group, Inc. is completed, Newmark will assume BGC’s obligations under the converted term loan and the original $575 million term loan, and BGC will guarantee those obligations.
BGC will retain access to the revolver, subject to availability that will increase as Newmark repays the converted term loan, and Newmark will guarantee BGC’s obligations under the revolver until the converted term loan is repaid in full.
BGC expects the separation to occur prior to the completion of the proposed initial public offering of Newmark, which is expected to be completed by the end of 2017.
Newmark intends to use the proceeds of its IPO to repay the balance outstanding under the original term loan and to partially repay the converted term loan. No other changes were made to the credit agreements, the filing noted.
BGC Partners is a financial services company based in New York.
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