NEW YORK, Aug. 15, 2023 /PRNewswire/ -- Newmark
Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a
leading commercial real estate adviser and service provider to
large institutional investors, global corporations, and other
owners and occupiers, today announced that it has entered into a
Delayed Draw Term Loan Credit Agreement (the "Credit Agreement") to
repay the principal and interest related to all or a portion of the
Company's $550 million 6.125% Senior
Notes due November 15, 2023 (the
"Senior Notes").
"This new Credit Agreement, together with the $300 million to $350
million of cash we expect to generate from our
business1 this year and Newmark's $600 million revolving credit facility, provide
sufficient capital to refinance our Senior Notes and continue to
invest in growing our business", said the Company's Chief Financial
Officer, Michael Rispoli.
On August 10, 2023, Newmark
entered into the Credit Agreement with several financial
institutions that committed to provide a $420 million senior unsecured Delayed Draw Term
Loan, which may be increased to up to $550
million, subject to certain terms and conditions (the
"Delayed Draw Term Loan"). The proceeds of the Delayed Draw Term
Loan will be used to repay the principal and interest related to
all or a portion of the Senior Notes. The Delayed Draw Term Loan
will mature on the earlier of November 15,
2026 and three years from the initial funding date.
The initial all in rate of the Delayed Draw Term Loan is
approximately 7.9%.2
For more information on the Credit Agreement, including with
respect to pricing, please see Newmark's Securities and Exchange
Commission filing on Form 8-K.
BofA Securities, Inc. acted as the active lead arranger and
bookrunner for the Credit Agreement, while Bank of America, N.A.
will serve as the Administrative Agent. Additional institutions
named as joint lead arrangers and joint bookrunners are Citizens
Bank, N.A.; Fifth Third Bank, National Association; PNC Capital
Markets, LLC; Regions Capital Markets; U.S. Bank National
Association; and Wells Fargo Securities, LLC.
ABOUT NEWMARK
Newmark Group, Inc. (Nasdaq: NMRK),
together with its subsidiaries ("Newmark"), is a world leader in
commercial real estate, seamlessly powering every phase of the
property life cycle. Newmark's comprehensive suite of services and
products is uniquely tailored to each client, from owners to
occupiers, investors to founders, and startups to blue-chip
companies. Combining the platform's global reach with market
intelligence in both established and emerging property markets,
Newmark provides superior service to clients across the industry
spectrum. For the year ending December 31,
2022, Newmark generated revenues of approximately
$2.7 billion. As of June 30, 2023, Newmark's company-owned offices,
together with its business partners, operate from approximately 170
offices with over 7,400 professionals around the world. To learn
more, visit nmrk.com or follow @newmark.
DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT
NEWMARK
Statements in this document regarding Newmark 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 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, Newmark 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 Newmark'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.
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1 Cash from
the business is defined as "Net cash provided by (used in)
operating activities" excluding the impact of (i) activity from
loan originations and sales, and (ii) cash used for loans to
producers and new hires, which the Company considers to be a form
of investment. For more information, please see "Cash Flows" under
"Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Newmark's most recent
filing on Form 10-Q.
2 The Company has not borrowed under the Credit
Agreement. Upon funding, the Delayed Draw Term Loan is expected to
bear an interest rate of Term SOFR plus 2.625% per annum. The
approximately 7.9% rate is based on one-month SOFR as of August 14,
2023.
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