The Loan Arrangers of Maine: Newmark's Financing Move

Newmark, a leading commercial real estate adviser and service provider, has recently entered into a Delayed Draw Term Loan Credit Agreement to refinance its senior notes. This move is expected to provide the company with sufficient capital to continue growing its business.

In the agreement, several financial institutions have committed to providing a $420 million senior unsecured delayed draw term loan. The initial all-in rate of this loan is approximately 7.9%, which is based on one-month SOFR as of August 14, 2023. The loan will mature on the earlier of November and three years from its initial funding date.

The proceeds from the loan will be used to repay the principal and interest related to all or a portion of Newmark's $550 million 6.125% senior notes due in November. This move is expected to provide the company with greater financial flexibility and allow it to continue investing in its business.

Newmark's Chief Financial Officer, Michael Rispoli, stated that the company expects to generate between $300 million and $350 million from its business this year. When combined with its existing revolving credit facility of $600 million, this will provide sufficient capital to refinance its senior notes and invest in growing its business.

The Credit Agreement was acted upon by several financial institutions, including Bank National Association, Wells Fargo Securities, LLC, Fifth Third Bank, National Association, PNC Capital Markets, LLC, Regions Capital Markets U.S., Citizens Bank, N.A., and Bank of America, N.A. These institutions have been named as joint lead arrangers and joint bookrunners for the Credit Agreement.

Newmark's financial performance has been strong in recent years, with cash from its business defined as net cash provided by operating activities excluding loan originations and sales, and cash used for loans to producers and new hires. This definition of cash is considered a form of investment by the company.

The company will continue to provide updates on its financial performance through its quarterly and annual filings with the Securities and Exchange Commission. For more information on the Credit Agreement, including pricing details, please see Newmark's recent filing on Form 8-K.

In conclusion, Newmark's recent financing move is expected to provide the company with greater financial flexibility and allow it to continue investing in its business. The delayed draw term loan credit agreement will provide the company with sufficient capital to refinance its senior notes and invest in growing its business.

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