On September 27, 2019, BGC Partners, Inc. (the “Registrant,” “BGC Partners,” “BGC” or the “Company”) closed an offering of $300 million aggregate principal amount of its 3.750% senior notes due 2024 (the “3.750% Notes”). The initial purchasers in the offering were Goldman Sachs & Co. LLC, Cantor Fitzgerald & Co., Citigroup Global Markets Inc., PNC Capital Markets LLC, BofA Securities, Inc., BMO Capital Markets Corp., ICBC Standard Bank Plc, Regions Securities LLC, UMB Financial Services, Inc., Wells Fargo Securities, LLC, Capital One Securities, Inc., CastleOak Securities, L.P., Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc. Sandler O’Neill & Partners, L.P., Santander Investment Securities Inc., and Wedbush Securities Inc. The Company received net proceeds from the offering of the 3.750% Notes of approximately $296.1 million after deducting the initial purchasers’ discounts and commissions and estimated offering expenses.
The 3.750% Notes were issued pursuant to an Indenture, dated as of September 27, 2019 (the “Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of September 27, 2019 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The 3.750% Notes bear interest at a rate of 3.750% per year, payable in cash on April 1 and October 1 of each year, commencing April 1, 2020. The 3.750% Notes will mature on October 1, 2024. The Company intends to use the net proceeds for general corporate purposes, including to pay down unsecured senior revolving credit agreement indebtedness.
The Company may redeem some or all of the 3.750% Notes at any time or from time to time for cash at certain “make-whole” redemption prices (as set forth in the Indenture). If a “Change of Control Triggering Event” (as defined in the Indenture) occurs, holders may require the Company to purchase all or a portion of their 3.750% Notes for cash at a price equal to 101% of the principal amount of the notes to be purchased plus any accrued and unpaid interest to, but excluding, the purchase date.
The 3.750% Notes are general senior unsecured obligations of the Company.
The Indenture contains customary covenants, such as reporting of annual and quarterly financial results, and restrictions on certain mergers and consolidations. The 3.750% Notes and the Indenture do not contain any financial covenants.
The 3.750% Notes and the Indenture contain customary events of default, including failure to pay principal or interest, breach of covenants, cross-acceleration to other debt in excess of $100 million and bankruptcy events, all subject to terms, including notice and cure periods, set forth in the Indenture.
The 3.750% Notes were offered and sold only to qualified institutional buyers (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)) and to non-U.S. persons (as defined in Regulation S under the Securities Act) pursuant to Regulation S. The notes have not been registered under the Securities Act or any other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The Company has entered into a Registration Rights Agreement, dated as of September 27, 2019 (the “Registration Rights Agreement”), pursuant to which the Company is obligated to file a registration statement with the Securities and Exchange Commission with respect to an offer to exchange the 3.750% Notes for a new issue of notes registered under the Securities Act and to complete such exchange offer prior to 365 days after September 27, 2019. In certain circumstances, the Company may be required to file a shelf registration statement covering resales of the 3.750% Notes.