BGC Partners, Inc. (NASDAQ:BGCP), an international brokerage company servicing the financial and real estate markets, today announces that it has sealed a committed unsecured credit agreement with a group of lenders. The agreement provides for maximum revolving loans of $150 million, with the option to increase the aggregate loans to $200 million.
On February 25, 2016, BGC entered into an agreement with Bank of America, N.A., as administrative agent, and a syndicate of lenders, including Capital One, N.A.; Industrial and Commercial Bank of China Limited, New York Branch; U.S. Bank National Association; Associated Bank, National Association; BankUnited, N.A.; and Western Alliance Bank. The maturity date of the facility is February 25, 2018.
Borrowings under this facility will bear interest at either LIBOR or a defined base rate plus an additional margin. This margin will range from 50 basis points to 250 basis points, depending on BGC’s debt rating as determined by S&P and Fitch and whether the loan is a LIBOR loan or a base rate loan.
Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, commented:
“We are very pleased to announce this new credit agreement, which further enhances the Company’s operating flexibility with respect to our growth strategy. We already have a very strong balance sheet, with more than $1 billion of liquidity. In addition, we expect to receive over $760 million in additional Nasdaq stock over time, which is not yet reflected on our balance sheet. This agreement bolsters our already robust financial position, while giving us even more resources we can use to make continued and disciplined investments for the long-term benefit of the Company.
The agreement, along with our liquidity position, and the expected receipt of 11.9 million Nasdaq shares, means that we have over $1.9 billion of dry powder available to us to drive substantial returns for our investors. We expect to use our considerable financial resources to profitably hire, make accretive acquisitions, pay dividends, repurchase shares and units of BGC, and/or repay debt, all while maintaining or improving our investment grade rating.”
For the official announcement from BGC Partners, click here.