BGC Partners Closes $300 Million Senior Notes Offering

BGC Partners, Inc., a global brokerage, announced this week that it has closed its offering of $300 million aggregate principal amount of 4.375 per cent senior notes as of the 10th of July 2020.

As highlighted by the brokerage, the notes are general senior unsecured Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term of BGC and will pay interest semi-annually at a rate of 4.375 per cent per annum. Specifically, the interest will be paid on the 15th of June and 15th of December each year, starting from the 15th of December 2020. The notes will mature after five years on the 15th of December 2025.

“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 New York-headquartered company said in its statement on Monday.

According to the statement from BGC Partners, the notes were offered and sold in a private offering exempt from the registration requirements under the Securities Act of 1993. 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, the company said.

“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,” the company said.

BGC Partners downgrades Q2 forecasts

The offering of its senior notes follows on from the company downgrading its revenue forecasts earlier this month. As Finance Magnates reported, the financial services company said that despite strong gains in revenue and profit in the first quarter, the company sees turnover across rates and foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term in the three months through June 2020 below forecasts.

Furthermore, the company warned that revenue is likely to be slightly below the low-end of the range of its previously stated outlook.

Earlier in June, BGC Partners shares had a stellar run, gaining 25 per cent to print a 3-month high at $3.22, which made it one of the best-performing stocks on the NASDAQ market.