LONDON, UK / ACCESSWIRE / September 12, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for BGC Partners, Inc. (NASDAQ: BGCP), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=BGCP. The Company announced on September 8, 2017 the completion of the previously announced acquisition of Berkeley Point Financial LLC for $875 million. BGC Partners is a leading global brokerage firm that delivers services in the financial and real estate markets. BGC Partners additionally announced that it has completed the previously announced investment of $100 million in cash for about 27% of the capital in a commercial real estate-related finance and investment business in concordance with Cantor Fitzgerald, L.P. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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The Announcement

BGC Partners (NASDAQ: BGCP) announced the acquisition of Berkeley Point Financial on July 18, 2017. Berkeley Point is a leading commercial real estate finance Company, operating on the origination and sale of multifamily and commercial real estate loans. The Board of Directors approved the transaction post a unanimous recommendation of a Special Committee consisting of four independent directors. The acquisition of Berkeley Point is expected to be immediately accretive to the Company's EPS upon closing.

Details of the Transaction

Under terms of the transaction, BGC Partners has entered into two credit agreements with participating financial institutions. The first Credit Agreement delivers the Company a $400 million two-year unsecured senior revolving credit facility, while the second agreement delivers a $575 million unsecured senior term loan. Initially, on September 08, 2017, BGC Partners drew $400 million under the Revolving Credit Facility and $575 million under the Term Loan facility.

The Company used the funds available along with cash on hand to finance transactions and expenses related to the transactions and financing. BGC Partners used a portion of the borrowing to repay in full the outstanding balance of $150 million under its previously existing revolving credit agreement dated February 25, 2016. The Term Loan Facility is subject to mandatory prepayment, with 100% of net cash proceeds of all material asset sales and debt equity issuances subject to certain customary exceptions.

Company Growth Prospects

BGC Partners (NASDAQ: BGCP) views this acquisition as a step to increase the scale and scope of Newmark, where's Berkeley Point's revenues surged by 55% YOY in the 12-month period ended March 31, 2017, where its net asset or book value was $509 million. It generated revenues and pre-tax income under GAAP of $314 million and $143 million, respectively, for the 12-month period ended March 31, 2017.

Berkeley Point's revenues are expected to advance by at least 30% for the year ending December 31, 2017, compared to $294 million in 2016. The growth is expected to be driven by synergies between Berkeley Point's and Newmark's large national sales organizations. BGC Partners announced on July 18, 2017, that it would invest $100 million in cash for about 27% of the capital in a commercial real estate-related finance and investment business along with Cantor, where Cantor will control the Investment and contribute around $267 million of cash and non-cash assets for about 73% of the Investment's capital.

Last Close Stock Review

On Monday, September 11, 2017, the stock closed the trading session at $13.15, rising 1.70% from its previous closing price of $12.93. A total volume of 1.31 million shares have exchanged hands. BGC Partners' stock price soared 5.20% in the last three months, 15.45% in the past six months, and 45.63% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 28.54%. The stock is trading at a PE ratio of 38.12 and has a dividend yield of 5.48%. At Monday's closing price, the stock's net capitalization stands at $3.75 billion.

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