BGC Partners Inc. on March 19 entered into a senior credit agreement with Cantor Fitzgerald LP, allowing each party and some of their subsidiaries to issue loans to the other, provided the aggregate principal amount outstanding at any time is no more than $250 million.
An earlier agreement had capped the amount at $150 million.
BGC on the same day drew down $150 million under the agreement and lent the amount to its subsidiary Newmark Group Inc. BGC had borrowed the funds at an interest rate equal to LIBOR plus 3.25%, and lent it on the same terms. Newmark intends to use the proceeds for at least three months to supplement a restricted cash account pledged for the benefit of Fannie Mae.
BGC's outstanding loans under its agreement with Cantor is now $180 million. Newmark's total net borrowings from BGC under a recently amended December 2017 agreement stand at $205 million.