BGC Group prices $700M senior notes due 2030

Published 27/03/2025, 11:08
BGC Group prices $700M senior notes due 2030

On Wednesday, BGC Group, Inc. (Market Cap: $4.69B), a company specializing in brokerage services for securities and commodities, announced the pricing of a private offering of $700 million in senior unsecured notes with a 6.150% interest rate, maturing in 2030. This financial maneuver is not open to the public as the notes will not be registered under the Securities Act of 1933 or any state securities laws, and are therefore subject to restrictions on their sale. According to InvestingPro, BGC maintains a GOOD financial health score, with strong revenue growth of 11.48% in the last twelve months.

The company, which operates under the ticker (NASDAQ:BGC), has disclosed plans to allocate the net proceeds from this offering to manage its existing debt. With total debt of $1.48B and a current ratio of 1.56, BGC intends to repurchase, redeem, and/or repay the entire outstanding $288.2 million of its 4.375% Senior Notes due in 2025, as well as the $11.8 million of the same notes held by its wholly-owned subsidiary, BGC Partners , Inc. The transaction will cover any applicable redemption premiums. Remaining funds will be directed towards general corporate purposes.

BGC’s forward-looking statements caution that actual results could significantly differ from expectations due to various risks and uncertainties. The company has stated it will not update these forward-looking statements unless required by law. For more detailed information regarding potential risks and uncertainties that could affect the company’s actual results, BGC directs investors to its SEC filings, including its risk factors and Special Note on Forward-Looking Information.

This financial update is based solely on the company’s recent SEC filing, which provides a glimpse into BGC’s strategic financial planning. It is important to note that this filing should not be seen as an offer to sell or a solicitation of an offer to purchase any notes.

In other recent news, BGC Group has reaffirmed its financial outlook for both the fourth quarter of 2024 and the first quarter of 2025. The company maintains its revenue and pre-tax adjusted earnings forecasts, emphasizing the use of non-GAAP financial measures to provide a clearer view of its operational performance. BGC Group’s management highlights these measures, such as Adjusted Earnings and Adjusted EBITDA, to exclude non-cash items and expenses that do not reflect the company’s core business activities.

In another development, Piper Sandler has maintained an Overweight rating for BGC Group, with a price target of $12.00. This endorsement follows a recent investor event where the new co-CEOs expressed confidence in continuing the company’s operations seamlessly. Piper Sandler also noted BGC’s strategic acquisition of OTC Global Holdings, which positions the company as the world’s largest energy and commodities broker. The firm remains optimistic about BGC’s prospects, particularly in light of the new management’s strategic direction and the acquisition’s potential to enhance market presence.

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