BGC Announces Pricing Of $300 Million Of 4.375% Senior Notes

Rhea-AI Summary

BGC Partners announced the pricing of $300 million in 4.375% senior notes, set to mature on December 15, 2025. The notes will provide semi-annual interest payments beginning December 15, 2020. Proceeds will be used to repurchase existing 5.125% senior notes due 2021 and for general corporate purposes. The offering is private and exempt from the registration requirements of the Securities Act. Forward-looking statements regarding the impact of COVID-19 on BGC's business are included, highlighting potential risks and uncertainties.

Positive

• Pricing of $300 million in 4.375% senior notes indicates strong market interest.
• Interest payments starting December 15, 2020, provide a predictable cash flow.
• Proceeds will be utilized to redeem higher interest debt, potentially reducing interest expenses.

Negative

• Dependence on favorable market conditions for the success of the offering.
• Potential risks from the COVID-19 pandemic could adversely affect financial performance.

NEW YORK, July 8, 2020 /PRNewswire/ -- BGC Partners, Inc. (NASDAQ: BGCP) ("BGC") today announced the pricing of its offering of $300 million aggregate principal amount of 4.375% senior notes (the "notes").

The notes will be general senior unsecured obligations of BGC. The notes will pay interest semi-annually at a rate of 4.375% per annum, on each June 15 and December 15, beginning on December 15, 2020, and will mature on December 15, 2025. The closing, subject to customary conditions, is expected to occur on July 10, 2020. BGC intends to use the net proceeds to repurchase, redeem and/or repay at maturity all $300 million outstanding aggregate principal amount of its 5.125% Senior Notes due 2021, including to pay the applicable redemption premium. Any additional net proceeds may be used for general corporate purposes. 

The notes were offered and sold in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended (the "Securities Act"). The notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This notice is issued pursuant to Rule 135c under the Securities Act, and does not constitute an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

Discussion of Forward-Looking Statements about BGC
Statements in this document regarding BGC that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, BGC undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

Media Contact:
Karen Laureano-Rikardsen
+1 212-829-4975

Investor Contact:
Ujjal Basu Roy or Jason McGruder
+1 212-610-2426

 

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SOURCE BGC Partners, Inc.

FAQ

What is BGC Partners' recent financial offering?

BGC Partners has priced $300 million in 4.375% senior notes.

What are the interest payment dates for BGC's senior notes?

Interest payments for the senior notes will be made semi-annually on June 15 and December 15.

How will BGC use the proceeds from the senior notes offering?

The proceeds will be used to redeem existing 5.125% senior notes due 2021 and for general corporate purposes.

When do BGC's senior notes mature?

The senior notes will mature on December 15, 2025.

What risks are associated with BGC's forward-looking statements?

Forward-looking statements may involve risks like impacts from the COVID-19 pandemic, which could differ from expectations.