Newmark Group (NMRK), a commercial property services business, and its parent BGC Partners (BGCP) a brokerage and fintech company, Thursday reported that Newmark has entered into transactions related to the monetization of the shares of Nasdaq (NDAQ) it expects to receive in 2021 and 2022.

Newmark said it expects cash proceeds of $113.2 million in Q3, due to its transaction regarding Nasdaq shares.

As explained by Newmark, on Wednesday it issued $150 million of exchangeable preferred limited partnership units to Royal Bank of Canada (RY). Contemporaneously, a special purpose vehicle entered into two supplemental variable postpaid forward transactions with the Royal Bank.

The forward postpaid transaction is economically similar to at-the-money put options struck at Nasdaq’s Sept. 25 closing price of $87.68, and provides Newmark with downside protection on the Nasdaq shares while allowing Newmark to retain all appreciation related to the 2021 and 2022 share earn-outs.

Newmark similarly retains all potential upside if Nasdaq trades above $94.21. As a result of the transactions, the Royal Bank has rights to receive up to 992,247 shares of Nasdaq common stock in each of the fourth quarters of 2019 through 2022.

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