By Rebecca Melvin
New York, July 26 - BGC Partners Inc. priced an upsized $135 million of five-year convertible senior notes at par after the market close on Monday to yield 4.5% with an initial conversion premium of 20%, according to a news release.
There is a $25 million greenshoe.
The deal was initially expected to be a $125 million base with an $18.75 million greenshoe.
The deal came at the midpoint of talk, which was 4.25% to 4.75% for the coupon and 17.5% to 22.5% for the initial conversion premium.
The Rule 144A deal was sold via joint bookrunners Bank of America Merrill Lynch, CantorFitzgerald & Co. and Deutsche Bank Securities LLC.
The notes are non-callable with no puts. The notes do not have contingent conversion. Upon conversion, the bonds can be settled in stock, cash or a combination. They have change-of-control protection and full dividend protection via a conversion rate adjustment for dividends above $0.17 per quarter.
In connection with the offering, the company entered into capped call transactions with one or more of the initial purchasers, which have a strike that boosts the effective initial conversion premium from the issuer's perspective to 50%.
Proceeds are intended for general corporate purposes, which may include financing acquisitions.
New York-based BGC is an inter-dealer broker specializing in over-the-counter and related derivative products.
| Issuer: | BGC Partners Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $135 million, upsized from $125 million
|
| Greenshoe: | $25 million, upsized from $18.75 million
|
| Maturity: | July 15, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, CantorFitzgerald & Co., Deutsche Bank Securities LLC
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $9.84
|
| Conversion ratio: | 101.6260
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 4.25%-4.75%, up 17.5%-22.5%
|
| Pricing date: | July 25, after the close
|
| Settlement date: | July 29
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: BGCP
|
| Stock price: | $8.20 at close July 25
|
| Market capitalization: | $1 billion
|
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